American's Are Piling On Debt Again!

The first sign is Americans are taking on more debt. Figures released by the Federal Reserve Bank of New York yesterday show U.S. households' debt balances grew 149-billion dollars during the first three months of this year. The total household debt of 12-point-73 trillion dollars is slightly higher than the 12-point-68 trillion dollar peak reached before the economic crisis of 2008.

Financial experts say the current level of consumer debt doesn't pose the threat that helped knock over the financial system nine years ago. At that time, household debt nearly equaled household income, while today it's about 80-percent of income. Economists say that means a much smaller risk to families' financial health.

In a nutshell, while it’s great people are spending again, make sure you have reserves for emergencies and don’t rely on credit for everyday expenses.

Source: New York Times

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