Skip to comments.Consumer credit jumps by $12 bln in July
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 ...
Credit card debt down, auto/personal/student loans up.
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.
No, more people out of work using plastic to get week to week. This is not a good sign.
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.
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.
“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.
Good to see credit cards going down.
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.
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.