New­ton Con­sumer Debt at $1,500

The Covington News - - SPORTS -

New York- To what ex­tent have New­ton County res­i­dents been mak­ing use of the large amount of in­stall­ment credit avail­able to them? How much do they owe at the present time on the cars, wash­ing ma­chines, dish­wash­ers, fur­ni­ture and other equip­ment they have been pur­chas­ing? Some­what more than they did a year ago, the lat­est fig­ures in­di­cate. It re­flects the fact that fam­i­lies, lo­cally and else­where, were more ex­pan­sive in 1973 in their spend­ing for high-price goods, thus adding to their in­stall­ment debt.

Nev­er­the­less, they have kept it within bounds. Be­cause their in­comes are higher than they were a year or two ago, they are in a po­si­tion to carry a larger debt load. In­fla­tion has been a draw­back, how­ever, mak­ing it harder for fam­i­lies to come up with their monthly pay­ments.

Ac­cord­ing to the lat­est Federal Re­serve re­port, in­stall­ment debt within the United States now to­tals $147 bil­lion, which is 19.2 bil­lion more than it was a year ago.

In New­ton County, based upon the aver­age earn­ing and ex­pen­di­ture lo­cally and upon na­tional credit re­ports, the in­stall­ment debt lo­cally is es­ti­mated to be $1,500 per fam­ily.

That is the aver­age, equiv­a­lent to about 16 cents of ev­ery dol­lar of in­come, af­ter taxes. Some fam­i­lies owe much more than this and oth­ers owe lit­tle or noth­ing.

For the en­tire lo­cal pop­u­la­tion, the in­stall­ment debt out­stand­ingly comes to an es­ti­mated $12,472,000. This takes into ac­count loans for au­to­mo­bile pur­chases, credit for the pur­chase of other con­sumer goods, per­sonal loans and loans for home re­pair and mod­ern­iza­tion. Not in­cluded are mort­gage debt, charge ac­counts and sin­gle pay­ment loans.

With re­pay­ments tak­ing $1 out of ev­ery $6, or so out of the aver­age fam­ily’s net in­come, they amount to ap­prox­i­mately $125 per month per New­ton County fam­ily.

Na­tion­ally, ac­cord­ing to the Amer­i­can Bankers As­so­ci­a­tion, the per­cent­age of delin­quent loans has been ris­ing. Their lat­est re­port shows 2.69 per­cent of them more than thirty days past due, as com­pared with 2.53 per­cent at the same time in 1973.

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