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Consumer indebtedness was soaring.
One of the economy's big weak spots right now is consumer indebtedness.
The product of the analysis was a model of consumer indebtedness using personal unsecured debt versus no debt.
Cheaper housing will increase disposable income among renters, but even there consumer indebtedness is a problemAnd technology may help.
Consumers are also not spending but saving to deleverage, and even so consumer indebtedness is still dire.
This research effort developed a multi-disciplinary model of consumer indebtedness used for early identification of US Air Force enlisted members most at risk for developing indebtedness.
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The "need" to have increased economic growth of any kind (increased consumer activity and indebtedness, for instance) is obviously unsustainable.
Other than that, households' financial savings (mostly bank deposits) was matched by increased indebtedness (consumer borrowing), leaving nothing for business development.
Paralleling the spendthrift habits of the consumer is the indebtedness of the economy to foreign lenders: The huge current accounts deficit, 5.5% of gross domestic product, represents money borrowed abroad to pay for spending (and capital investment) in excess of American economic output.
In the age where younger generations are quickly becoming digital borrowers due to seamless access to growing financial services that bring the convenience where funds are disbursed to users within minutes, it is, therefore, important to build better mechanisms to educate, communicate and protect the consumer against over-indebtedness.
"It makes no sense that there are no protections for loans of $2,500 and above," Kalra said, calling loans with triple-digit interest rates "an abusive practice" that leads to long-term indebtedness and consumer harm.
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