"Americans are borrowing less and paying off more debt than in the recent past. This change, which we continue to study carefully, can be a result of both tightening credit standards and voluntary changes in saving behavior." Donghoon Lee, senior economist in the Research and Statistics Group at the New York Fed Said in a statement.
"Lending practices are tight making it more difficult for people to secure more debt," said Chris Viale, president and CEO of Cambridge Credit Corp., a non profit credit counseling agency based in Agawam, Mass, "The only choice they have is paying down debt."
I am pleased to see so much debt being paid down. However, from the sounds of it, it seems that most of the debt reduction is due to cosumers being forced to by their creditors. Like me, many have had their limits reduced or credit card accounts closed through balance liquidation programs. But if you are following Dave Ramsey's plan it doesn't matter if your credit card accounts are closed. You aren't going to need them anyway. Debt snowball those balances into an oblivion!
(via CNNMoney.com)
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