>>Will people continue to spend (and rack up credit card debt) as they have been accustomed and at what point does it become apparent to them that they should pull in the reins? <<
Well, part of my point was that IF credit card expense is so high because people are using it for NON-DISCRETIONARY spending,(ie, food, gasoline, etc.) then we need to break those numbers down more completely to see what the term "credit card DEBT" really means. As an example, I use my credit card for just about every type of routine expense imaginable since my credit card company gives me incentives (ie, frequent flyer miles) to do so. However, we pay our credit card IN FULL each month. So is my credit card "debt" part of the overall debt that is being monitored? If it is, then I think the debt would be artificially high. Considering the poor retail numbers, I have to think the consumer isn't on as much of a tear as though debt numbers would indicate. OTOH, if the consumer is being squeezed so tightly by higher food and fuel costs that they are resorting to using credit to pay for non-discretionary expenses, then that would be VERY BAD, imo. |
