Now, the Joneses have no debt, meaning to stay up you are going to have to get rid of it too

Keeping up a social status has often been referred to as “keeping up with the Joneses”. Flat screen TVs, iPhones, riding lawnmowers and other things are bought instantly with people who have this instinct. The Federal Reserve has explained that more people are getting debt settlement relief instead of using credit cards as the Joneses.

Fed says debt within the home is going down

The Federal Reserve gave out a new report. The report shows all of the numbers for household debt in America. It seems that once the recession came, individuals decided to tighten their belts and pay things off. Nobody will do poorly with debt consolidation. According to the Wall Street Journal, consumer debt levels have fallen for seven straight quarters. In 2008, the 3rd quarter had a fairly high peak. Fortunately, it went down 6.5 percent from then until 2010 and went down one more 1.5 percent by the second quarter of 2010. In just 3 months, $ 178 billion of debt was paid off. Everyone is doing better each month. A cash til payday loan is given to these people with the losing of debt.

An extra warning

There is more happening right now. The increased savings and falling debt in the household is not the only thing happening. Delinquency rates went up with the consumer debt going down. 0.5 percent was how much the delinquent debt rate went down. Bankruptcies went up 34 percent though. Only 161 million payday loan accounts were opened while 272 million accounts were closed meaning that less individuals are signing up for paycheck loans to pay stuff off. At this rate, credit card companies might need an emergency cash loans themselves.

Debt getting cut

Debt is something Americans are avoiding. They’re also trying to get rid of what they have. More individuals are trying to pay credit cards off than get new ones. You will find more individuals going bankrupt though. You will find good things showing people are more interested in getting out of debt and keeping their money all to themselves.

Further reading

Wall Street Journal

blogs.wsj.com/economics/2010/08/17/ny-fed-households-continue-to-reduce-debt/