By Eric Swanson
The Federal Reserve released its latest findings of revolving consumer credit, better known as credit card debt. Credit card debt was down for the month of January by 2.3 percent.
Unfortunately, non-revolving consumer credit went up 5 percent in January. That means that the amount of auto loans and student loans went up tremendously in January.
Overall, consumer credit was up 2.4 percent in January. This is the first time consumer credit was up in over a year.
Why did consumer credit finally start going up?
Does this mean that the frugal citizen has given up on saving more and spending less?
Is there pent-up demand by consumers from a year long recession?
Or are prices getting too high and forcing people to take on debt to survive?
The 4th quarter 2009 Consumer Credit results will be coming out in a few days. These numbers are the figures that drives the Consumer Debt Clock. It will be interesting to see if consumer debt will continue to go down after this report.
For more info on the Federal Reserve’s numbers,
click here.
To add the Consumer Debt Clock to your blog/website,
click here.
–Convincing People To Stay Away From Debt–
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Past articles about consumer credit going down:
– In Tough Times, US consumers forging new behaviors
– Slapped by recession, can Consumer Nation rethink?
– What are investors waiting for? Consumers.
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for the price of one latte a year. – – Beating Debt Charts
Consumers WANT to consume! As a nation, we feel better about ourselves when we think we can afford stuff, so we shop. Let’s work to get the consumer debt clock moving backwards again!
I agree. Let’s all do our part to save more, give more, and spend less.
–Eric
I once took out a loan without reading the terms properly. This was largely because I was glad for the approval and was too eager to seal the deal. Up to date, I am still paying for that mistake.
@Joe
Man, I am sorry. I’ve been there. The convincing marketing they dispel makes us believe we’ve won something, but in actuality we are losing so much more.
I will pray you can earn your freedom. Check out our BDO Run Route for some ideas on your financial marathon to beat debt.
http://www.beatingdebt.org/BDORunRoute.php
–Eric