Consumer Debt Escalates as Individuals Consider Payday Loans
The debt situation in America isn't pretty. There's little wonder why payday loan use has been on the rise when you consider the following:
- As of April, consumer debt through commercial banks was increasing at an annual rate of 6 percent, according to the Federal Reserve.
- Credit card debt in the United States rose by about 70 percent in the last decade, according to the Center for American Progress.
- Household debt is at a record high (121.2 percent) as a percentage of disposable income.
- Families have cashed out more home equity than ever before, the center reported.
- From 2001 to 2004, the proportion of families carrying a credit card balance rose 1.8 percentage points, to 46.2 percent.
- From 2001 to 2004, the proportion of families that reported that they had saved in the preceding year fell 3 percentage points.
Financial problems continue to escalate. Some may think the use of no faxing payday loans would contribute to these difficulties, but others see them as a way out.