Should Arizonians be Worried about Sky High Consumer Debt?

It looks like the days of credit-shyness have come to an end. Following the Recession, Arizona consumers were timid about taking on new debt. Recently, though, auto loan, student loan, and credit card debt levels have shot up. These levels now to exceed pre-Recession highs. While this may seem like cause for alarm, a lot of economists think that it’s a good sign. It shows that Arizonians and other Americans are feeling more confident about their financial stability. However, there are some warning signs out there that might indicate the need for caution. After all, it’s difficult to predict just how long the economy will remain stable. Therefore, even the most confident Arizona consumers should always have a backup plan just in case something goes wrong. Namely, keeping an eye on your credit reports and building an emergency fund may go a long way toward protecting your credit score in the event of a financial crisis. Why Arizonians should be Aware of how Every Type of Consumer Debt can Lead to Credit Score Problems On the one hand, the fact that Arizona consumers are getting over their credit-shyness is a very good thing. Using credit consistently and responsibly is the only way to build good credit. On the other hand, over-confidence can lead to overwhelming debt and a damaged credit score. Student Debt One type of debt that seems to be almost unavoidable for a lot of Arizonians is student loan debt. College is expensive, but higher education is also a good investment because, ideally, having a degree will lead to landing a good job. Currently, Americans collectively carry...