Consumer Borrowing Jumps in January

[Career Prole]

Do these people not read the F&$#ing news, or WHAT?!

WASHINGTON - Buyers increased their borrowing on credit cards, auto loans and other types of consumer debt at an annual rate of 6.6 percent in January, the fastest pace in three months, the Federal Reserve reported Monday.

That represented an increase of $11.5 billion in borrowing from December, which was double what many economists had been expecting. It came after an increase of $8.7 billion in borrowing in December, which was revised up significantly from an initial estimate that borrowing had risen by just $3.1 billion in December.

The 6.6 percent rate of increase in January compared to a 5 percent rise in December and was the fastest advance since consumer debt rose by 8.2 percent in October.

Economists had expected higher borrowing in January although the extent of the surge took them by surprise. They said that the higher borrowing in January was fueled by strong post-holiday sales at retail stores...
http://story.news.yahoo.com/news?tmpl=story&cid=668&ncid=749&e=6&u=/ap/20050307/ap_on_bi_go_ec_fi/consumer_credit

Hey!! Hyper-consumin' jagasses! The credit companies want to eat you alive...shouldn't you stop spreading gravy on yer ass?

[frank frankly]

1. yes, i SHOULD stop spreading gravy on my ass

but sadly i cannot...

[madmark]

2. Particularly in light of the awful bk bill on the precipice of passing

[notadmblnd]

3. My ass is all meat

got out of debt three years ago, I owe nothing but my house. I figure if I don't have cash, I don't need it.

[Boomer]

4. In a few years...

I bet I can pick up anything I want for a few dollars at the yard sales of the financially devastated middle class. I'm holding out for a flat screen TV.

[MissB]

13. Sad, but probably true. (nt)

[DS1]

5. Looks like an economic supernova is going on.

To my completely untrained eye.

[ozone_man]

19. Yes, and usually afterwards,

there is a great gravitational contraction, maybe even a black hole. That's us, when the debt bubble explodes.

[Sinistrous]

6. I'm afraid I am guilty of adding to this total...

I had to use my credit card to pay a dentist bill. Sorry for my conspiuous consumption.

[MARALE]

7. This could not have to do with gas prices?

I think the higher gas prices are making many put things on credit card. Plus wages are not going up and unemployment went up a little last month. I think in this day and age, inflation is somewhat being absorbed by credit card users. In a couple of months, it will begin to show up as people start to adjust.

[maggiecleveland]

8. My mom thinks more folks use credit cards like debit cards

something to do with points.....

[eallen]

14. Convenience use doesn't add to consumer debt.

In essence, this figure is counting what goes unpaid.

[callous taoboy]

9. Strapping myself to a mound of fire ants

should have the same results, eh chaps?

[gizmo1979]

10. Why would it be higher in jan than dec?

Could it be people putting property taxes on their credit cards.That or people really celebrated New Years>

[Tempest]

11. Post-holiday sales

It's posted as part of the article above.

[FloridaPat]

12. Coulod be some of Decembers debt was moved to January to

save on income taxes. I find it hard to believe more debt was done in January than December. Although it's a little confusing the way it's written.

[applegrove]

15. ***holes! Buyers should not be going into debt right now!

[Career Prole]

16. It's a rreeeaallly bad time for it, isn't it?

They can't fake an economy indefinitely.
They'll find their interest rates steadily climbing, scant bankruptcy protection, and their jobs hanging by a thread.

[DuaneBidoux]

17. People are charging against their incoming tax refunds

Watch what happens in June, July, Aug when the tax refund checks are through and the bills remain (because somehow they found it necessary to spend on top of the credit cards they had intended paying off with those refunds).

[Coventina]

18. Does that include student loans?

Because if it does, I'm included in that number.

[Career Prole]

20. I think so...

From the article...

"Demand for credit cards and other types of revolving credit jumped at an annual rate of 8.1 percent in January to a level of $801 billion following an 8.5 percent rise in December.

Demand for non-revolving credit, a category that includes auto loans, loans for mobile homes, boats and other miscellaneous categories such as loans for vacations or schooling, rose by 5.6 percent to a level of $1.32 trillion following an increase of 2.8 percent in December."

Quite interestingly, the last line is "The Fed report does not include mortgage loans or home equity loans."

That category could get really ugly too. :(