Credits and loans are everywhere we go. This is because they are powerful it we are a responsible consumer. Otherwise it will eat you up and will forever be in debt. Since a lot of people are applying for different types of loans such as house loan, car loans etc, different companies and banks offer benefits. If you are planning to invest on something such as stocks or a car, you should visit http://xn--forbruksln-95a.com. In consumer loans in forbrukslån.com/ you can compare consumer loans without collateral. A consumer loan, also known as private loan, has no security requirements. Meaning, the bank does not require a mortgage on a home or car to grant it. Hence, you are free to dispose the many in any way you want because the loan is not limited into one use area. If you have several smaller loans, you can reduce the monthly expenses in order to avoid larger interest rate. But if you already decided to get a loan you must always remember to budget properly.
Consumer debt is the debt held by individuals, not by governments. Consumer debt come in the form of credit card debt, home mortgages, student loans, auto loans and other loans. Another term of consumer debt is household debt. According to the statistics from the Federal Reserve, the total household debt of the United States in 2007 was $13.3 trillion and the household debt of the average American in 2007 is equal to 14.29 percent of his total income.
But did you know that Americans are not the only ones up to their neck in consumer debt. In the data from England Statistics, British citizens owe an average of $6,500 in unsecured debt which makes it twice the European average of $3,200.
On the other hand, studies show that approximately 70% of the Unites States and British GDP is fueled by consumer spending, according to Money Zine. Unfortunately, consumers’ debt started to bring negative impacts to the economy when it forces the citizens to spend less.
One thing that may complicate this matter is the United States entering a house crisis which will make consumer debt problems worse. The UK already experienced the same situation. The UK housing boom happened 18 months ahead of similar economic developments in the States. Since the end of 2005, British credit card delinquencies have risen 50 percent, causing banks to lose billions of dollars.
It is indeed important to fully understand the relationship between consumer debt and the government and how one affect the other.