Americans Borrowing Less, Report Says
In loans, that is, they’re borrowing less in loans. Credit card borrowing is still a boomin’ business though. Not such a good thing for consumers, since we all know a credit card is that dirty word, a “revolving debt”. But the report says that the increase or steadiness of credit card borrowing is not enough to offset a big slowdown in auto loans (remember a couple posts ago, about auto loans?)
Financial specialists believe that the cutback in loans, specifically auto loans, is due to the fact that America is under financial duress due to rising energy costs, namely the high gas prices we’ve all come to know and love (I say that facetiously).
Still, credit cards and other revolving debts are on the rise, since May actually. Financial analysts believe that consumer spending, a whopping 2/3 of the total economy will continue to slow until the end of this fiscal year, barring any unforseen gas price relief. When are we going to get electric cars?
