Consumer Debt Going Down

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fffresh
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Consumer Debt Going Down

Postby fffresh » Sun Jan 11, 2009 6:25 pm

The Federal Reserve announced Friday that revolving credit, which is largely made up of credit card debt, decreased in November for the first in '08. Bank credit cards make up approximately 85% of revolving credit.

This type of debt is now decreasing at an annual rate of 3.4% and as of November the total balance for revolving credit debt was $937.5 billion.

For the first time in recent history the consumer debt situation is improving.


magyar1045
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Postby magyar1045 » Sun Jan 11, 2009 7:34 pm

Might have decreased in November, but probably significantly increased in December - Christmas shopping.

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Postby magyar1045 » Mon Jan 12, 2009 12:26 pm

fffresh wrote:The Federal Reserve announced Friday that revolving credit, which is largely made up of credit card debt, decreased in November for the first in '08. Bank credit cards make up approximately 85% of revolving credit.

This type of debt is now decreasing at an annual rate of 3.4% and as of November the total balance for revolving credit debt was $937.5 billion.

For the first time in recent history the consumer debt situation is improving.


Probably only because more and more consumers are filing bankruptcy - eliminating debt.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Mon Jan 12, 2009 3:38 pm

I think bankruptcies have remained relatively staple; Not because people don't need to file for bankruptcy, but because they can't with the '05 Bush bankruptcy reform. Now it doesn't make a whole lot of sense to do it if you can't wipe out your debts.

What we are seeing is part of the population living life as indentured servants to debt because of this. This is very sad when you consider most that have to resort to bankruptcy don't do it for frivolous reasons, instead they had a major, unpredictable event like massive medical bills or job loss that got them into the mess. Bush cites bankruptcy abuse as the reason to take bankruptcy away. To be honest I would say a very tiny fraction of bankruptcies are outright abuse (less than 3%). It's not like anyone wakes up in the morning and says they want to set out to file for bankruptcy so their credit can be shot for years after that.

I haven't followed if there's any talk by Obama about reversing Bush's crazy bankruptcy reform?
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Postby fffresh » Thu Jan 15, 2009 1:51 am

The Reserve Bank of Australia (RBA) that spending on credit cards and charge cards was down over 9% for the month of November. These figures are based on spending though, not credit card debt balances.



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