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Rise in debt may not necessarily mean overwhelming debt in Texas

Most Americans would welcome any news of an improving economy. Many people in Texas and elsewhere may also be more wary of the dangers of overwhelming debt, ever since credit card debts and home mortgages significantly contributed to the recent recession. However, some experts on economics and finance are suggesting that the recent increase in household debt could be a sign of an improving economy.

Two out of the last three quarters Americans have been taking on more debt, which is a significant change from the previous trend that had been occurring since the recession began. Prior to the last three months, the statistic has been decreasing for the last 14 quarters in a row. Many economists have interpreted this new trend of increasing debt as a sign of an improving economy. The economists are looking at the data regarding increasing debt relative to income, which shows the economic outlook for the U.S.

Financial experts believe that the new data shows that debt is becoming less of a burden for the average American household. Therefore, the latest figures are a sign that the financial strength of the American household is likely on the rise, despite less than promising numbers for other economic indicators. Consumer confidence is at its highest point in five years.

Although there may be many signs that the economy is improving, overall economic growth is still slow and unemployment is still high. This means that not everybody is feeling the improvements in the economy in Texas and elsewhere. This could result in many people still being buried by overwhelming debt. For some of these individuals, bankruptcy may be a good option to obtain debt relief.

Source: CNBC, "Rise in Household Debt Might Be Sign of a Strengthening Recovery," Annie Lowrey, Oct. 27, 2012

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