Has the recession changed your spending habits?
Americans may be more conservative and responsible in their spending habits after the financial meltdown, according to a new report.
According to the American Bankers Association, the number of consumers behind on their credit card payments has dropped to an eight-year low in 2010’s first quarter. Delinquencies across different debt categories have also decreased.
Between high unemployment and decreasing home values, consumers have tried to curb their spending and banks have limited their lending. This has resulted in less credit given out and limitations on spending on consumers, leaving more for the monthly bills.
Around 3.88 percent of bank credit card accounts were past due by 30 days or more in the first quarter of 2010. This is the first time the rate has fallen below 4 percent since 2002.
"Consumers are doing a much better job managing their finances, building their savings and spending and borrowing less," ABA Chief Economist James Chessen told CNN.
The report parallels what other government and private reports that say Americans seem to be taking a much more conservative approach to their finances.A recent report from the Commerce Department shows that consumer’s personal income is being stashed more into their savings accounts than anywhere else.
However, even though Americans are becoming more financially aware and conservative, it does not mean that the economy is beginning to boom.
Unemployment is at 9.5 percent and June saw 125,000 jobs lost. June was the first month of job losses in a year.
The recent loss of jobs doesn’t include the 1.21 million already out-of-work Americans who want to work, but are too discouraged to look because of the weak market.
Recent news about the U.S. job market:
»AC360 Blog: 7.9 million jobs lost – many forever
»BBC News: Job market growth eases in June but still rising
»Wall Street Journal: Window Is Closing for Jobless Numbers to Rescue Democrats
What are your thoughts on this recent report? Leave your comments below.