Paying Down Unsecured Loans is Critical to Financial Health

The Federal Reserve reports the state of the debt

Consumers are worried about their unsecured loans. According to the Federal Reserve, Americans currently owe $917 billion on revolving credit loans. Almost all of the debt is the result of credit card and about $70 billion of the total is currently past due. That is bad news for consumers and shows that most Americans are still hampered financially by the bad market and overwhelming expenses. For anyone looking to regain control of their finances, here are some ! tips to follow.

The future of credit lending

As a result of the huge amount of debt Americans carry and the level of defaulting loans, credit card companies are continuing to scale back lending. Lenders are drastically reducing lines of credit and some experts report that within the next year there will only be half as much credit available to the general consumer market. They predict that companies will continue to cut down credit for subprime borrowers and even for moderate to good credit customers. It is also suggested that there will be continued hikes in interest rates from credit lenders, despite other forms of interest decreasing. Financial analyst Martin Timbelset noted that due to the "depth and length of the current recession, lenders have another excuse to recoup their losses by any means possible." … click here to read the rest of the article titled “Paying Down Unsecured Loans is Critical to Financial Health“