Outstanding U.S. consumer debt rose at an annual rate of 5.9% in August, pushed higher mostly by a hefty gain in credit-card debt, the Federal Reserve reported Friday...Revolving debt such as credit cards was the biggest driver behind the overall rise in August, the data show. That debt climbed by 8.1% in August, or by $6.1 billion.
I talked about this back in July. With no home equity to pull out of their houses and no bankruptcy protection to shed credit card bills, people are in for a world of hurt. Looking forward to the Christmas season, people have essentially two choices - plunging further into credit card debt and committing financial suicide or restraining their spending and killing retailers. Smart money's on the former.
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