Cash advances and credit cards may be among the most popular forms of borrowing, but some investors may be tempted to cash out if they have too much debt.
That’s because the U.S. economy is experiencing some of the weakest growth rates in more than a decade, according to a report from the Federal Reserve Bank of New York released on Thursday.
The economy added 1.7 million jobs in November, a slower pace than economists had expected, the report said.
But the unemployment rate, which is calculated as a percentage of the labor force, remains elevated at 5.9 percent.
That means Americans are still struggling to pay back the debt they borrowed to buy goods and services, including homes and credit.
The Federal Reserve is expected to raise interest rates again on Monday.
Investors can buy or trade stocks with the help of a loan, but they need to get a good price for the asset and their income, the Fed said.
It is possible to cash in on debt as long as it is not too high and the borrower has sufficient savings, the Federal Credit Union Institute wrote in its report.
To make it easier for investors to sell stocks, some investors are buying debt through the process of cash advances.
The process involves the issuing of a bond, usually in the form of a cash advance, with the intention of selling it to another investor in a short period of time, according