Good news in the realm of consumer credit card debt is something of a rarity; unless it involves the person getting out of debt completely, there’s generally not a lot of cause for celebration when the subject of debt comes up.
Well here’s a little bit of good news for those of you searching for debt relief or a chance at credit repair: the New York Federal Reserve recently released their quarterly report detailing the nation’s household credit and debt and it seems that there’s some good news hidden in there – not much, but some.
The Good
According to the report, a greater majority of Americans are actually current on their debt payments rather than behind. Auto loans are up by 25%, and while many consumers closed rather than opened credit card accounts in the last year, the amount of credit account inquires rose for the first time since 2007.
The Bad
Unfortunately, the report came with less than cheery news as well. More and more people have foreclosures weighing their credit reports down – close to 500,000 people according to the report, nearly a 9% increase from the first quarter. Bankruptcies rose as well – up 34%, meaning 621,000 consumers have a BK on their reports.
The Future
While the news of rises in foreclosures and bankruptcies isn’t exactly a sight for sore eyes (or wallets), the news of a rise in auto loans and credit inquires is a clear sign that the majority of consumers are ready to test the financial waters again, albeit pretty cautiously.
Most people are in fear of joining the growing unemployment ranks, and so will keep their credit and checkbooks on lockdown unless absolutely necessary. But they can only curb their spending enthusiasm for so long before they have to break out the cards for something, and that will be the key to kicking the economy back into gear – even before companies start hiring again, according to economists.
And with our national debt slowly (and I mean slowly) declining, consumers may be ready to take their wallets for more than just a financial necessity.
