U.S. Consumer Debt Rose $15.4 Billion in November

[Purveyor]

Jan. 8 (Bloomberg) -- U.S. consumer borrowing rose more than forecast in November as Americans used credit cards and auto loans to add to a record amount of debt, Federal Reserve statistics showed.

Consumer credit increased $15.4 billion for the month to $2.51 trillion, the Fed said today in Washington. In October, credit rose $2 billion, less than the previously reported gain of $4.7 billion. The Fed's report doesn't cover borrowing secured by real estate, such as home-equity loans.

The figures suggest Americans are relying more on credit cards and other short-term borrowing to maintain spending after the collapse in subprime lending made bank loans harder to get. An increase of 133,000 U.S. jobs in November and December was the lowest for those two months since 2002 and disposable incomes aren't keeping pace with inflation.

``With job losses mounting, this could be the tip of the iceberg with consumers needing to rely more on credit cards now that personal income is lagging,'' said Chris Rupkey, an economist at Bank of Tokyo-Mitsubishi, in New York.

---EOE---

http://www.bloomberg.com/apps/news?pid=20601103&sid=apia8f3hFuX8&refer=us

[bahrbearian]

1. Well we can't refinance the House now,, but looky what came in the Mail

a new credit card.

[TalkingDog]

3. Yeah, Bank of America is very generous.

I got an emergency card from Working Assets. As soon as I saw it was BOA, I cut it up. (then got a better one from our Credit Union)

I thought I called and cancelled it. But just yesterday, they sent me a nifty little note telling me I could pay any and all of my bills (electricity, phone) quick and easy with their card!!!!

Ain't they just wonderful?



My Favorite Master Artist: Karen Parker GhostWoman Studios

[Warpy]

6. Uh, you can't just cut it up and expect them to know about it

You have to give them a call to cancel it. Mailing in the pieces with a letter that curls the hair in their noses will get rid of them forever.

BTDT

[TalkingDog]

7. I thought I called.

I hadn't gotten anything for 2 months and then the mash note.

The Spousal Unit says they can continue to contact you for up to 2 years afterwards since you have, by default, agreed to do business with them by applying for the damned card in the first place.

Maybe the letter is the next step. Thanks for the tip.



My Favorite Master Artist: Karen Parker GhostWoman Studios

[sendero]

2. Talk about unsustainable...

... credit card debt is the worst. With interest rates ranging from about 10% to double that, once you have a serious balance you can never catch up.

This little "downturn" is going to be really disastrous for a lot of people.

[TransitJohn]

4. rates are more

like 18-35%....pure usury

[ProgressIn2008]

8. I'm amazed at how many people around me don't seem to see it. Esp credit cards. eom

[flashl]

5. This should be good news in a 'Debt Based Economy'?

:sarcasm: