• 07
  • February
    2012

Personal debt-whether from credit cards, auto loans, or other personal loans-is a burden on many Americans, including Tennesseans. It is a burden that has contributed to many a bankruptcy.

According to recent data, the average Tennessean's consumer debt increased has increased in the last year. The question for analysts looking at the data is whether consumers are falling back on bad spending habits in order to stay afloat, or simply more confident in the economy and therefore spending more.

According to a recent article in the Tennessean, improvements in managing personal debt levels, both in Tennessee and the nation as a whole, were fairly good right after the recession hit. But those improvements were largely set back in 2011. That was especially the case in the Nashville area, where average debt levels are now nearly on the same level as the national average.

According to Experian, the average consumer in Tennessee owed $24,043 in credit card, auto and personal loan debt in 2011, nearly $500 more than 2010. In Middle Tennessee, the average 2011 debt load in these areas increased to $24,152, which is $419 more than 2010.

While some financial experts say the data indicates a return to bad spending patterns, others say it is an indication of increased consumer confidence. As has been pointed out, people usually borrow and spend more money when they have more confidence in the economy.

Others say that decreasing wages and rising prices are forcing many to borrow in order to meet their obligations.

Source: The Tennessean, "Nashville area's consumer debt level ticks higher," Duane Marsteller, February 7, 2012.