Kavmerica.com

It was announced today that for the first time since records started being kept, that the average American’s debt fell by .08% during the third quarter of 2008.

It’s good to see Americans’ finally reducing their debt levels albeit by less than 1%.  Still it is a good start.  As a country we need to be more responsible when it comes to our saving and spending.  .08% is a healthy amount.  It gives the economy time to adjust because when Americans save it also means they aren’t spending money into the economy.  If that happens to rapidly it could affect the economy negatively.

It remains to be seen whether or not the shinkage in debt is due to credit tighening up or if Americans are just using sounder judgement in their fiscal planning.  More than likely it is the former rather than the later.  It is more difficult now to get credit.  It’s certainly not as difficult as some would lead you to believe but access to credit has become slightly more difficult.