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CONSUMER CREDIT CONTINUES ITS DECLINE

6 November 2009 by Cullen Roche 5 Comments

Consumer credit fell again in September actually picking up pace from the August decline.  The total decline was 7.2% year over with revolving credit increasing its decline to 13.3%.  De-leveraging continues as consumers continue to fix their balance sheets.  The stock market, of course, could care less.

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Comments
  • SS

    Consumer credit is the real gauge if the underlying growth of our credit based economy. If consumer credit is contracting that means the real economy is still contracting outside of government stimulus.

    This rally is still a bull shit Fed driven bubble and nothing more. This is proof.

    11/06/2009 at 12:32 PM
  • Edna Rider

    I pay off all credit cards at the end of every week (Fridays!). Drives the spouse crazy. It’s my own quiet way of telling the banks and the government to stick it.

    It looks like the computers are working at multithreaded speed to make sure today finishes in the green. What a joke.

    11/06/2009 at 12:51 PM
    • Rob

      Why every week? If you want to stick it to the banks, transfer the payment so it gets there just in time, once a month. The banks then float you free money. (Always pay everything on time, but never early.) Also, make sure to use the rewards card that give the biggest reward (gas and groceries 5% cash back, etc).

      I have never carried a credit card balance. I charge almost everthing I purchase on a credit card regardless of amount and pay the card off at the end month so the payment arrives at least 3 days early. (I never use a debit card and I rarely touch cash.) VISA and Amex love me. The banks are lukewarm on people like me. No credit risk but little profit.

      11/06/2009 at 1:24 PM
      • Robert

        No, best option is to just skip the cards. Like is too short to keep up with and tip-toe around all the rules. Forget the credit card perks as that forces you to walk a mine field. One mistake (your or theirs) and you get nailed to the wall.

        11/07/2009 at 7:50 AM
  • jt26

    I think it is a good sign that consumer credit is declining but (big) business credit is not. America can go back to making things that make life better and not just feel better by keeping pace with HGTV.

    11/07/2009 at 1:41 PM