There is good news when it comes to debt as reports indicate that many Americans are continuing to pay off debt and, as a result, the Federal Reserve Bank of New York stated that consumer debt was down $178 million as of June, which is a significant drop from reports from the end of March. This is giving many hope that the economy, or at least consumers, may be recovering better than expected despite the fact that consumer spending has not been that great, the job market is still slow to add employees from the countless number of unemployed men and women across the nation, and mortgage troubles are still plaguing homeowners.
There are those who believe that areas like consumer spending are slow due to the fact that many Americans are saving more money and working on getting out of debt. While some areas of consumer spending have seen increases or decent numbers, there is an overall indication that many Americans are budgeting their money in a way that allows them to pay off debts like personal loans, credit cards, and their mortgage.
Yet, the job market has been quite slow and there are still millions of individuals who are looking for a job but are unable to find employment. Also, homeowners still continue to struggle with their mortgage and are seeking home loan modifications in order to avoid the loss of their homes, but it appears that debt that has caused trouble for so many areas of the economy is being combated by consumers.
While homeowners are still struggling due to unemployment and housing troubles, many are trying to erase areas of debt like credit cards so that they may use funds to work on other areas of their personal finances, like their mortgage payment. The consensus seems to be that homeowners who are either underemployed, looking for a job, or who may even be on firm financial ground are using the income they have to erase their debts so that they may pay for the necessities while they continue to look for work or ride out this time of economic uncertainty.