Americans' Increase Their Borrowing in August...A Lot

[NNN0LHI]

http://ap.tbo.com/ap/breaking/MGBBTQ7VIEE.html

WASHINGTON (AP) - Americans increased borrowing on their credit cards and for purchases such as autos in August, although the gain wasn't as sizable as it was the previous month.

The Federal Reserve said Friday that consumer debt rose at an annual rate of 2.7 percent in August after climbing at a faster 3.6 percent rate in July.

The overall increase in debt of $4.88 billion was in line with private economists' expectations. Consumer debt had risen by $6.5 billion in July and a huge $14.96 billion in June.

Economists have been expecting consumer borrowing to slow, given that the savings rate has dipped to record lows. The savings rate was minus 0.7 percent in August, the third straight month it has been in negative territory, but a slight improvement from the all-time low for savings of minus 1.1 percent in July.

A negative savings rate means that Americans are spending all they earn in a given month and even dipping into past savings or borrowing to finance spending above their earnings level.

[wryter2000]

1. Folks, please stop

If you have to use credit to buy an essential, do. But, please, please, please don't buy expensive halloween costumes and things you don't absolutely have to have.

[MissB]

2. Wise words!

:)

[bryant69]

3. But I really wanted to go as the Human Torch

And those costumes (well the safe ones anyway) are pretty pricy. What, oh what should i do?

Bryant
Check it out --> http://politicalcomment.blogspot.com

[triguy46]

7. Especially if you're buying them at the Tyson Mills Mall Victorias Secret

see those posts on the DU GD page.

[mccoyn]

4. Thats my fault, sorry.

I bought a home in Auguest. I spent a lot more than I made that month. That has to throw off the average a bit.

[Birthmark]

5. Nah.

I balanced you out. I've been running a surplus. :)

[Lenore]

8. I make it negative again :-)

Just bought a home also, in July. We had to reach into our savings both Aug. and Sept.

It's expensive to cover all the moving and establishing a new home costs.

[SoCalDem]

6. Watch the numbers for last minute bankruptcy filings

and the piss-poor sales for Holiday sales..

Lots of people will be missing their plastic fix this december..

[Sadie5]

9. Holiday sales

should look pretty darn grim after the rush to bankruptcy and those that file have had their plastic taken away.

[ClintonTyree]

10. I have a friend who's a bankruptcy attorney........

he had to stop taking new cases a week ago, he just can't get any more in before the deadline. Every other bankruptcy Attorney he knows is in the same boat. He says he can't see where this is going to do the credit card companies any good, they're going to have to discharge so much debt in the coming weeks they'll never recover, even with the "harsher" laws.
I can't believe our legislators did this to the American family. Sure, people should live within their means but a lot of people are out of work right now, despite the "rosy" employment picture painted by the bushies.
This is going to kill an already anemic economy. Let the retailers battle it out with the credit card companies, they're the ones that are really going to lose. This Christmas season is going to be one of the worst in history, mark my words, and at a time when the economy can least afford it.
The bush "economic miracle" is falling to pieces and they have no one to blame but themselves. Their ties to Corporate America are going to kill this country.