Strategic Consulting Services Confirms Borrowers Changing Habits With Recession

June 17, 2013 (PRLEAP.COM) Business News
New York June 17, 2013 Strategic Consulting Services (, a New York firm providing client-focused financial consulting, confirms that American uncertainty over finances and attitudes towards debt is slowly changing for the better since the recession began. Even as the Dow Jones industrial average reaches an all-time high, many lower income middle class Americans continue to cut their budgets. Good and bad news about the U.S. jobless rate, housing prices, higher taxes, gas prices, pre-recession debt, and financial indicators continue to weigh on the thoughts of borrowers and driving them to seek financial help.

In a recent study by Reuters/Ipsos, two-thirds of adults say they are cutting spending and 72 percent say it is order to payoff debt and increase savings. Although the overall U.S. economy expanded 2.2 percent last year, consumers are still uneasy as less growth is expected due to tighter fiscal policy in Washington since the budget sequester.

There does appear to be one improvement in household finances that could help support economic recovery. A measure of the burden of U.S. household debt hit a record low in the fourth quarter of 2012, reporting debt payments to disposable personal income has dropped. Now the debt-to-income ratio has reached 10.38 percent, the lowest since the study began in 1980. This indicator peaked in the third quarter of 2007, shortly before the U.S. economy hit recession.

"Household balance sheets are improving and that lays the foundation for more spending, which in turn can lead to a virtuous cycle of more business investment and hopefully more jobs," said Dana Saporta, director of U.S. economics research at Credit Suisse in New York. Household debt of all kinds dropped $100 billion in the first three months of 2013, reducing nationwide obligations to $11.23 trillion while mortgage debt fell $7.93 billion as well. Credit card balances decreased also by $19 billion in first quarter of 2013, showing that Americans are changing attitudes and behaviors. Only two types of debt, student and auto loans, increased during the first quarter of the year.

"While over the last year we saw an increase in calls from individuals looking for financial options, initially the increase was in regards to collections, foreclosure, or bankruptcy," said Freddie Serrano, Senior Financial Consultant at Strategic Consulting Services. "Over the last six months we have seen a trend of more borrowers wanting to pay-off debt early and get ahead in their situations."

About Strategic Consulting Services
Strategic Consulting Services is a finical services firm with teams specialized in Debt Management, Mortgages and Business Services. With a comprehensive client-focused approach, the Company provides assessments looking beyond immediate financial issues to help clients build greater financial strength with smart habits and choices. Since 2007, Strategic Consulting Services has helped individuals and small businesses create savings plans, reduce debt, and make wiser spending choices. For more information visit