Paying off debt became a little slower as the fiscal cliff fix comes into play. American households are spending less of their income to pay off debt than ever in almost 30 years, according to an article by the Wall Street Journal.
In the third quarter of 2012, 10.6 percent of after-tax income was spent on debt payment requirements. It hasn’t been this low since 1984.
The start of this came with the housing market bubble crash, according to an article in Economic Times. Since then it has been a slow recovery, and with more money going to taxes, it could slow down the amount of debt paid off.
"You have a lot of people refinancing their mortgages at lower rates," Gennadiy Goldberg, an economist at TD Securities in New York, said to Economic Times. "Some homeowners have more money in their pockets to spend, which should be positive for the economic recovery going forward."
- The 20 best cities to live in for first-time...
- A solution to paying that medical bill you...
- Navy vet says the effects of this are like...
- How depression threatens financial well-being
- Restaurants experimenting with pay-in-advance...
- 7 benefits of taking vacation time
- Allow student loan bankruptcies, but hold...
- Raising a kid will cost you $245,000 —...
- Allow student loan bankruptcies,... 15
- Raising a kid will cost you $245,000... 10
- Food stamp use shows continued... 8
- Want to increase attraction in your... 7
- Balancing act: Readers dispute... 4
- A solution to paying that medical bill... 4
- Dave Ramsey says: Don't make... 4
- Middle-class shoppers more sensitive to... 1