The Federal Reserve Bank's New Numbers
Today we received some what some would say is good news from The Federal Reserve Bank. The report stated that consumer credit dropped by $21.5 billion from June 2009 to July 2009.
The Fed went on to say that consumer credit lines in the U.S. totaled $2.47 trillion in July, down 10% from June’s 2.49 trillion total. If I do the math it seems to me it is only a 1% drop, however we all know how the fed can play with numbers, especially when talking about trillions here and trillions there.
The main reason though for this cut back as many of you know is because banks have pulled back on credit lines, raised interest rates and cancelled credit cards. There is not a day that goes by that we do not hear about this from our own clients. It is almost like a broken record now.
The conversation usually goes like this. I was 30 days late on one of my credit cards. Next thing I knew, all of them then raised my interest 29.9%. In addition, they lowered my credit line for X to Y, just $100 above what I owe them. Sound familiar to you?
So, the “good news” from the Fed is that consumer credit totals are the lowest now since 2006. Tell me something I don’t know….please.
If you find yourself in this familiar situation and do not know where to turn, talk to a
debt relief company that can help you negotiate and settle you
credit debt for a fraction of what you. We’ll get this thing lowered alright!
Comments
