According to the Federal Reserve, consumer borrowing dropped at a 3.5 % annual rate from January to February of this year. Interestingly, for credit cards the drop was a whopping 9.7%. Christopher Rugaber, economics writer for the Associated Press, concisely states, “that is the sharpest drop in dollar terms since federal records began in 1968, and the steepest percentage fall since 1978.”
As the article states, a consumer refocus on building up savings and eschewing borrowing is underway. Many who struggle with finances in the current climate are afraid of coming clean with themselves about debt and spending, resigning themselves to the most ineffective strategy of all: inaction. But since thrift is the new rage, there is no better time to ditch the plastic as a cornerstone for cutting debt and spending. Jumpstart the process by bringing together all of your current debt information, take action to have interest rates lowered, set priorities for paydown, and trim from your discretionary and non-discretionary costs where possible.
Raj Patel writes for DebtGoal.com, a do-it-yourself system for getting out of debt and lowering your interest costs. DebtGoal.com incorporates all of the techniques discussed in this post and can help users understand and get visibility to and manage their debt finances.
Tags: consumer borrowing drops debt plan, consumer spending under control, credit card borrowing and debt, debt with credit card overusage, drop in credit card borrowing
