Americans are feeling the best they
have about their financial situation in nearly four years, according to
the latest CredAbility Consumer Distress Index, a nonprofit credit
counseling service.
The improvements in the housing market is lessening the stress on
Americans’ wallets, according to the report, which analyzed the
financial condition of U.S. households in the second quarter, taking
into account factors like employment, housing, credit, family budgets,
and net worth.
Americans’ improving finances lately, according to the report, is
mostly being driven by the number of home owners who have been able to
cut their housing costs by refinancing into ultra-low mortgage rates and
a big decrease in the number of home owners who are late on their
mortgage payments.
“Slowly but surely, consumers have worked to repair their finances
during the past four years by paying down debt and better managing their
credit,” says Mark Cole, executive vice president of CredAbility. “They
are more in control of their household budgets, increasing their
savings even as gasoline prices have risen and the drought has started
to affect food prices. While millions of people continue to battle
unemployment, the majority of households with stable jobs and housing
has made wise financial choices and are moving in the right direction.”
The study found that consumers’ finances are healthiest in Boston,
Washington, D.C., Dallas, and Houston. Meanwhile, the cities with the
most Americans financially distressed were in Orlando; Tampa-St.
Petersburg, Fla.; Riverside-San Bernardino, Calif.; Las Vegas; and
Miami-Fort Lauderdale, Fla.
Source: CredAbility