Have you wondered if you’ll ever get the hang of making purchases with and paying off the plastic? You’re not alone. Changing times, changing rules and changing interest rates leave a lot of consumers feeling both lost and alone navigating the world of plastic and that uncertainty has led to an amazing turn of tables on the credit industry.
The “season of the staycation” is in full swing. Gone are the days when American families took big vacations financed on credit cards that they planned only to pay off sometime next year. Instead, those same families are rediscovering happiness in their own backyards; skipping extravagant vacations to hang out at home. Even people who are not struggling financially are making adjustments. They’re choosing less expensive vacation locales and cutting extras from their travel packages.
And this fundamental change in spending behavior hasn’t been relegated only to the arenas of travel and luxury either. Americans are spending less in almost all categories. Shopping is no longer a fun weekend pastime; for many it’s a special occasion. One that is often marked by a trepidation that curbs spending even further. What’s better than money in the bank, after all?
In fact, Americans aren’t just spending less to keep their money where it belongs. They’re unloading debt at record pace. In June, Americans paid off $10.3 billion dollars in debt, according to consumer credit statistics from the Federal Reserve. Half of that was revolving debt — mostly credit cards. What makes it incredible: debt and revolving debt usually go up, not down, says Steven Rick, senior economist with the Credit Union National Association. Instead, Americans are paying it off as fast as they can.
Can we blame them? Financial struggle is often cited as a leading cause of stress in adults. Where problems exist marital, familial and health problems often follow close behind. People are unable to sleep, their choices in food often deteriorate and their health follows. Marriages fall apart, families suffer. For most people, money problems start when they lose all or part of an income — job security and a little money in the bank goes a long way in not only ensuring economic health, but overall health as well.
Granted, some of the recently seen debt payoffs could be triggered by changing terms. Higher minimum payments, lower credit limits and the higher bar set to obtain credit in the first place could no doubt be spurring even those in robust financial standing to abandon the debt holding ways of their past. Still, it makes sense that in this economic climate people are pulling back on their own as well.
But is a full withdrawal from investing a good idea, even in this economic climate? Perhaps for a rare few, but for most at least some investment of funds is still in order. Money in the bank may be nice, but there is one thing better – money making money. For these people a Great Lakes Secured Fixed Income is a worthwhile consideration. Great Lakes Secured Fixed Income investments offer risk-shy investors a way to invest without the worry that comes with participating directly in the volatile stock market today. A fixed secured note of $32,000 at 10% APR (interest only) for a 5 term would pay the note holder $267 per month, for instance. This means over the 5 year term the note holder would receive a total of $16,000 in 60 monthly payments. That’s a 50% ROI. Plus, the original $32,000 principle is also returned at the end of the term.
Related posts: