Consumer Credit in U.S. Fell by Most in Three Months

Consumer Credit in U.S. Fell by Most in Three Months (Update3)
By Vincent Del Giudice


April 7 (Bloomberg) -- Consumer credit in the U.S. declined in February more than anticipated, indicating Americans are reluctant to take on more debt without further improvement in the labor market.

Borrowing fell $11.5 billion, the most in three months, after a revised $10.6 billion January gain that was twice as much as initially estimated, the Federal Reserve said today in Washington. The decline in the February measure of credit card debt and non-revolving loans was worse than the lowest estimate in a Bloomberg News survey of 34 economists.

The drop was the 12th in 13 months and shows consumer purchases, which account for about 70 percent of the economy, will be limited until households become more optimistic about the recovery. Confidence to finance spending may be restored if employment keeps rising after a March payroll gain that was the biggest in three years.

“I don’t think we’re going to have the credit-fueled spending we had in the past,” said Gary Thayer, chief macro strategist at Wells Fargo Advisors LLC in St. Louis. “A lot of consumers are deleveraging. They see excess borrowing as threatening.” .........(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=atP8pvCXydOA&pos=1

green shoots!

People should learn to borrow less. Cut your credit cards, it will be better in the long term.

I paid off a CapitalOne card a couple of years ago. Recently, I received a "Give Credit a Second Chance" introductory offer from them. Attractive rate, but it was for the first six months or so. After that, it goes up. And just miss one payment and it goes way up.

"No thanks," I said. I'm not going down that road!

be nearly shackle free. I'll be debt free soon and I can't wait. :D

of FICO and the other credit rating scams. My credit is excellent, never paid late, never over the limit etc, etc, etc. I've played by their rules and yet, I've been penalized with shocking, usurious rates. Nah. They can keep their "credit" and I'll pay cash. :D

News at 11.