According to a CNN article, America’s total consumer debt has fallen for the first time ever. That’s both good and bad in that it fell for two reasons:
1. People are spending less (good)
2. Credit is harder to come by, so people are forced to spend less (bad, if you need that thing you would have otherwise bought)
According to the article, total debt fell $30 billion, which is still a drop in the bucket of our total $13.91 trillion national debt. But at least some of us are on the right track.
Personally, we’ve contributed to the debt payoff as we cut $17,000 off our debt this year, and continued to keep credit card debt off the books (at least month-to-month). We still use our credit cards for almost all purchases, but we pay them off each month.
Americans’ Net Worth Dropping like Rocks
Wow. The biggest drop in 57 years. I guess if the report ran from 1929, then it might be the second biggest drop…or would it? Although I would think Americans have more assets today, I’d be interested to see a percentage comparison of net worth losses between now and the Great Depression years. But then again, the end is still yet to come.
I can tell you that we’re definitely throwing more into our savings rather than spending on toys and other stuff. We still have a good bit of disposable income each month, but that’s all the more reason to save up now when you can, before times might get tough.
How are you faring this year? Have you been saving more, spending more, finding yourself in the midst of the credit crunch?