A new report released indicates US Consumers are still paying off debt and repositioning themselves for the new economy.  This is typical for recessionary times as consumers look to prepare themselves for the unknown future of the economy.  It can also be a promising sign for the economy, as when consumer debt decreases that better positions consumers in the near future for increasing consumer spending, which helps the economy.  The economy is driven by consumer spending and consumers need to shore up their finances before consumer spending can see a significant rebound and life the country’s unemployment rate.

The average consumer now carries $7,404 in credit card debt, a decrease of about $1,000 since January 2009, says Ken Lin, CEO of CreditKarma.com. Similarly, home mortgage loans and home equity loans both dipped four percent.

“With our near economic meltdown and a high unemployment rate, debt is really becoming top of mind for a lot of consumers,” Lin says. “People are really starting to get the message that paying with cash and saving more pays off.”

Despite, the debt decreasing rapidly, $7,400 is still a lot of debt for the average person, but the outlook for consumers, credit card issuers, and the economy is looking upward.  Once consumers begin to pay more of this debt off, consumer spending will increase more rapidly and fuel the once great economy we once had.

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