Household debt fell 1.1 percent in first quarter of 2013, according to Manilla.com.
Total household debt among middle class families fell 1.1 percent in the first quarter of this year, according to research done by the financial organization site Manilla.com.
The debt figure includes outstanding mortgage, auto and college loans.
A Spectrem’s Millionaire Corner research study of Mass Affluent (those with $100,000 to $999,999 in net worth not including primary residence) investors showed that 23 percent of all investors are concerned about the amount of household deb they have. That number increases to 32 percent for those investors 45 to 54 years of age.
Among the Mass Affluent with net worth between $100,000 and $499,000, 29 percent reported concern.
Twenty percent of those surveyed by Millionaire Corner said they wished they had not taken on as much debt as they did prior to the recent economic collapse.
”Loan debt is decreasing, meaning people have been amassing their money around housing, making bigger down payments and are better qualified to make purchases today than they were before,’’ said Marc Karasu, vice president of marketing for Manilla.com, in an interview with foxbusiness.com.
Karasu said that high unemployment rate areas tend to have higher household debt numbers, and that also corresponds to higher student loan debt.
But he said consumers are not only paying down debt but are making less purchases requiring borrowing.
“People just aren’t spending money as frivolously as they had been in the past,’’ Karasu said. “People are being more careful, spending what they can only afford in cash, or what they can easily cover. They are not overextending themselves.”
The Manilla.com research showed that San Francisco had the highest mortgage debt average at the end of 2012 among major American cities with $312,301. Los Angeles was second and San Diego was third.
The top city in terms of average student loan debt was Memphis at $21,578, followed by Las Vegas and Atlanta.
Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.
In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.
McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.
McDill is the father of four children, and an active fan of soccer, Jimmy Buffett and all things Disney.