Consumers getting rid of credit at an alarming pace
December 9, 2009
If you look at the data on credit, it’s clear there’s a massive shift underway. Consumers have become fanatical about cutting back on debt. October credit fell by $3.5 billion (-1.7% year over year). September’s decline was dramatic, $8.7 billion. October marked the ninth month of declines, a trend that has not been seen in 66 years. This is unlikely to change until consumers feel more confident about the economy and their own personal situation. It remains unclear if the recession is well and truly over, although indicators suggest unemployment has peaked, it’s likely consumers remain unconvinced.
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