February has reported lower than average mortgage borrowing activity, and it’s no wonder why in the wake of all this bad publicity on mortgage lenders over extending credit to those who were not necessarily able to repay their debts, and a record amount of foreclosures, as well as bad publicity for some mortgage lenders who purposely extended loans to those they knew could not repay on time.
And actually, my mistake, consumers not only borrowed less for mortgage loans (home loans), but they also borrowed less in general. This means that there were less car loans, general loans, home improvement loans, lines of credit and the whole shubang. This may have been a sign of decreased consumer confidence, which did ebb in February as reported by some financial institutions.
However, in sharp contrast to the decrease in borrowing on non revolving lines of credit, credit card activity, which is revolving debt, that kind that shoots us all in the foot, was up pretty markedly in February. Reportedly consumers were spending like crazy on their credit cards, so this may have signified some sort of a push for less borrowing and more of a convenience spending perhaps?
We all know how convenient credit cards can be, and that can be what gets us in trouble with them, even if they are low apr balance transfer credit cards. Just remember the rule, try to pay them off every month if you can, that way you can benefit from credit card use.