Consumer Credit Fell

Consumer credit fell in August as banks tighten the credit and cause 7th straight month of keep consumers from getting to more credit. The consumer is reluctant ot borrow due to job losses and uncertainty in the market place. The total package of restrictive lending terms and the job situation causes the banks reluctance and the consumer is also reluctant to borrow or lend. That is the reason Consumer Credit Fell.



The consumer credit fell by 12 billion or 5.8 percent at an annual rate, to 2.46 trillion according to the Federal Reserve report released Wednesday. These continued drops month to month are the longest since 1991.



The demand for credit has had a sever drop families are trying to pay down debt and not interested in taking on debt. Revolving credit such as credit cards ddecreased by 9.91 billion. If this continues it will put the consumer in a better economic condition, but it will shrink the over all economy in a recession. It is not good in the long run.

Tim Lorenz

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Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!