Mon Sep 10, 2012, 07:41 PM
Omaha Steve (37,620 posts)
US consumers cut credit card use for 2nd month
WASHINGTON (AP) - Americans cut back on borrowing in July for the first time in nearly a year. Credit card use fell for the second straight month, suggesting many consumers remain cautious in the face of high unemployment and slow growth.
Total consumer borrowing dipped $3.3 billion in July from June to a seasonally adjusted $2.705 trillion, the Federal Reserve said Monday. It was the first decline since August 2011. The drop in credit card debt offset a small rise in a measure of auto and student loans.
The Fed also said Americans have borrowed much more than previously estimated after it revised consumer borrowing data back to December 2010. June's figure was increased to $2.708 trillion, or $130 billion higher than initially thought. It's also well above pre-recession levels.
Consumer debt declined even though Americans boosted their spending in July by the most in five months, according to government data released last week.
FULL story at link.
Read more: http://apnews.excite.com/article/20120910/DA1763700.html
In this July 16, 2012 photo, credit logos are displayed on a storefront window in Atlanta. Americans cut back on borrowing in July for the first time in nearly a year. Credit card use fell for the second straight month, suggesting many consumers remain cautious in the face of high unemployment and slow growth. (AP Photo/David Goldman)
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2 replies, 1106 views
US consumers cut credit card use for 2nd month (Original post)
|Omaha Steve||Sep 2012||OP|
Response to Omaha Steve (Original post)
Mon Sep 10, 2012, 07:47 PM
Populist_Prole (3,119 posts)
1. I don't want to let Mr Debt get a foot in the door, ever.
I've never carried a balance through a payment period, ever. In credit company circles I understand that makes me a deadbeat of sorts. I feel good for my restraint, but really it's a fear of the slippery slope.
Response to Populist_Prole (Reply #1)
Mon Sep 10, 2012, 08:05 PM
exboyfil (3,776 posts)
2. Same with me
I enjoy the float which can be up to 40 days as well as the points. I do understand the arguments against credit card use (causes higher prices and causes individuals to spend more, but I think I have a handle on it.) You also have some additional rights as a consumer when you use a credit card.
From a macro sense contracting spending is very bad in a recession, but from an individual perspective it is the right thing to do.