U.S. Consumer Borrowing Rose $5.2 Billion in February (January borrowing $10.3B)

[Robbien]

Source: Bloomberg

Consumer credit increased $5.2 billion for the month to $2.54 trillion, the Fed said today in Washington. In January credit gained $10.3 billion. The Fed's report doesn't cover borrowing secured by real estate, such as home-equity loans.

. . .

Revolving debt such as credit cards rose $4.7 billion during February, compared with $5.6 billion in January and $3.4 billion a year earlier, the report showed.

Non-revolving debt, including auto loans, increased $497 million in February, after a $4.7 billion jump the prior month and a rise of $3.2 billion in February 2007, the Fed said.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aM_Af10opvlc&refer=home

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So people are still using credit cards but car loans are almost non-existent; a half mil this month down from almost five billion last month.

[Mojambo]

1. People are using credit cards to subsist.

Not good. Not good at all.

[xioaping]

6. That's foolish

to use credit cards to live on.

[Javaman]

8. of course it's foolish, but when your faced with either starve or charge

you aren't left with much choice.

[Vanje]

9. Yes.

Much wiser to starve.

[Deja Q]

2. I thought easy credit and easy access money made our world go round?

:shrug:

[Robbien]

3. It is, but now all the easy credit is being given to the banks

from the US treasury at rock bottom interest rates. Banks like our almost free cash so much they are stuffing the greenbacks into their own mattresses.

[xioaping]

5. OK to spend today's money, better to spend yesterday's...

Never good to spend tomorrow's money. Borrowing makes people poor.

[whistle]

4. Bush's "stay the course" on the economy will just caused more Americans

...to go deeper into debt. The other side of this would be how many Americans have gone into "dis-savings". Any numbers there?

[Stuart G]

7. Rebates will be used to pay down debt...

Another Bush disaster.
......Rebates will be used to pay off credit debt. No stimulus will be felt, not even a little.........
......Or if not credit debt, other kinds..like debt to the oil companies, electric companies, or some help with mortgage debt..
These people who think this might, and I say might work, are as Yosemette Sam says................idiots...

:bounce: :bounce: :bounce: :bounce: :bounce:

They make Mr. Bouncer look smart............

[Lance_Boyle]

10. half a billion, not half a million

Still out of line with the larger number, but at least it's not an order of magnitude larger.