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Consumer credit jumps by $12 bln in July
Marketwatch ^ | 9.8.11 | Greg Robb

Posted on 09/08/2011 8:47:11 PM PDT by Free Vulcan

WASHINGTON (MarketWatch) -- U.S. consumers increased their debt by a seasonally adjusted $12.0 billion, or at a 5.9% annual rate, in July, the Federal Reserve reported Thursday.

(Excerpt) Read more at marketwatch.com ...


TOPICS: Business/Economy; Government; News/Current Events; Politics/Elections
KEYWORDS: consumer; credit; debt; economy
This is the tenth straight monthly increase and the largest since April 2008.

Credit card debt down, auto/personal/student loans up.

1 posted on 09/08/2011 8:47:18 PM PDT by Free Vulcan
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To: Free Vulcan

Awesome! Except that if you take out the student loans, it decreased. Maybe, not so awesome, considering those kids are taking out loans for increasingly worthless degrees in order to enter an empty job market. Bummer.


2 posted on 09/08/2011 8:50:24 PM PDT by perfect_rovian_storm (It is terrible to contemplate how few politicians are hanged. -- G.K. Chesterton)
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To: Free Vulcan
hey, if raising the debt ceiling is wise, why not? /s
3 posted on 09/08/2011 9:24:32 PM PDT by paul51 (11 September 2001 - Never forget)
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To: Free Vulcan

No, more people out of work using plastic to get week to week. This is not a good sign.


4 posted on 09/08/2011 9:28:41 PM PDT by 23 Everest (Artifical intelligence is no match for natural stupidity! 831 Bonnie)
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To: perfect_rovian_storm

Ah an actual person who is paying attention and doing the homework to know what is going on. The students can’t find jobs to pay back all those loans though.


5 posted on 09/08/2011 9:31:24 PM PDT by Revel
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To: perfect_rovian_storm
I recently took out a student loan for my daughter for the coming year. Interest is at 2.25%. Pretty hard to argue with. I'm pretty sure this year of college will increase her earning power by at least 2.25%.
6 posted on 09/08/2011 9:49:29 PM PDT by hinckley buzzard
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To: 23 Everest
The article says you're full of it, but then why bother actually reading anything. Reading is hard right?
7 posted on 09/08/2011 9:52:14 PM PDT by hinckley buzzard
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To: hinckley buzzard
I'm pretty sure this year of college will increase her earning power by at least 2.25%

If she's going to pay the loan off in one year, you're probably correct. Over, say, 10 years, though, that interest will amount to over 10% of the borrowed amount.

I'm not saying it's a bad investment -- just bigger than you indicated.

8 posted on 09/09/2011 1:09:45 AM PDT by BfloGuy (Keynesians take the stand that the best way to sober up is more booze.)
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To: 23 Everest

“No, more people out of work using plastic to get week to week. This is not a good sign.”

Exactly right. Or using plastic just to get by week to week, even if not unemployed. Times are getting tough out there and people are using any ship in a port to get by, including their credit cards for daily living expenses.


9 posted on 09/09/2011 2:23:46 AM PDT by flaglady47 (When the gov't fears the people, liberty; When the people fear the gov't, tyranny.)
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To: Free Vulcan

Good to see credit cards going down.


10 posted on 09/09/2011 4:18:06 AM PDT by Huck (I don't believe there is just one God--humanity seems like the work of a committee to me.)
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To: hinckley buzzard

I wish her well. Particularly in her math studies. :)

In all seriousness, it’s difficult to pull away from what we’ve been sold as ‘the thing you must do’ for generations, but these days you can’t take anything for granted. Do a cost-benefit analysis, looking at the tuition and interest payments coupled with the loss of income during the 4 year period vs entering her chosen field and gaining 4 years of raises and work experience. Pay close attention to how much spending power she will lose due to having to pay off those school loans. It’ll be a heck of a lot more than 2.25% of her income that you’re signing away for quite a number of years.

Many kids today are being sold into debt slavery with school loans, because they failed to plan properly and made bad decisions based on shoddy conventional wisdom.

You may well have made the correct decision, but your answer to me indicates that you haven’t done the honest math involved in making that decision.


11 posted on 09/09/2011 6:26:19 AM PDT by perfect_rovian_storm (It is terrible to contemplate how few politicians are hanged. -- G.K. Chesterton)
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To: hinckley buzzard

Feeling superior are we? And yes I didn’t read the article. I was adding my 2 cents as to what is a contributing factor.


12 posted on 09/09/2011 5:20:37 PM PDT by 23 Everest (Artifical intelligence is no match for natural stupidity! 831 Bonnie)
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