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  • Economy: Changing Consumer Behavior

    Part of the reason Americans got into financial trouble was because they were overleveraged: they were buying too much house, too much car and too many big-sticker appliances, charging them to credit cards.

    Sometimes out of necessity comes a correction, which might have a positive long-term effect.

    Households are now starting to carry less debt: even further – they are starting to pay their credit cards on time, so much that credit reporting agency Transuion stated, “The national credit card delinquency rate, which measures payments that are 90 days or more past due, was 0.6% at the end of the second quarter — that’s down nearly 19% from the first quarter and 35% from the second quarter of 2010.

    Wow.

    Part of the reason Americans got into financial trouble, was because they were over-leveraged: they were buying too much house, too much car and too many big-sticker appliances, which were charged to credit cards. It seems that out of necessity, consumers are changing their behavior – being more responsible, presently and for the future.

    The other reason, which was due to new changes in regulations, credit cards are harder to obtained, so people that shouldn’t have them, are not getting them as easily, which was part of the problem. The other thing about the change in consumer behavior, is that now Americans , as collective group, can focus on measures to stabilize the economy in a real-world way, and reconstitute more thoughtful ways to not only spend money, but to save even more.

    Good luck.

    Calvin Wilson
    Founder and CEO
    Upstart: Business and Management for 20-40 Year Old Professionals
    calvin.wilson1@verizon.net
    http://twitter.com/Upstart__Nation

    Filed Under: Management

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