News & Resources

Higher incomes could increase outlays

Nov 13, 2013 Quinn Thomas

With Americans seeing higher incomes in September, more people may be inclined to increase expenditures in the coming months. Personal income jumped 0.5 percent in September, according to the U.S. Department of Commerce.

"Consumers are doing OK, they're spending," Joseph LaVorgna, chief U.S. economist at Deutsche Bank Securities Inc, told Bloomberg. "Big-ticket purchases are doing reasonably well."

As incomes increase, Americans may feel more comfortable spending money on gifts for friends and family in the coming months. However, it is important not to deplete savings accounts, as unexpected expenses can arise at any time and lead to financial troubles.

Even the most conservative spenders can be thrown off by a surprise cost. In the worst situations, people could be put at risk of falling short on certain essentials, potentially leading to costly late fees and penalties.

But, financial troubles can possibly be avoided if consumers take advantage of short term lending. With one of these loans, borrowers can receive money quickly to put toward bills. Once it is paid off, the amount in interest is often less than what people would have faced if a credit card payment was missed.