Consumer debt, both revolving and non-revolving is on the rise – increasing more than 4 percent in 2004. Last month's initial report from the Federal Reserve, which showed a sharp $8.7 billion decline in consumer debt was entirely reversed ... to a gain of $2 billion.

Total non-mortgage consumer debt is now reportedly at $2.1 trillion. For each of the approximate 120 million households in this country, this equates to $17,530 in non-mortgage debt. This is up from $16,035 in 2002. Given the low interest rates of recent years that would have facilitated quicker repayment, and the rash of cash-out mortgage and home equity refinancing that has taken place over the same time period, the growth in this debt in recent years is concerning. Mortgage and home equity debt are not included in these totals.

The average length of a new car loan is still approximately five years with an average amount financed in 2004 of $24,888. The percent of the vehicle's price that is financed was lower than in recent years, 89 percent versus 91 - 95 percent each year since 2000, so borrowers own slightly more of the vehicle than in the past several years.

Revolving debt, which is debt that is not paid back on a predetermined schedule, is comprised primarily of credit card debt. Dallas Credit Union can help you manage your debt. Give us a call and let us help you out.