Consumer Debt Growth Slows

Good News!

Consumer debt grew at its slowest pace in 6 months as of last November, according to a blog in the Wall Street Journal.

Consumer credit (not including real-estate) grew at 4.8% according the Fed, which was far slower than the 7% in October.

Most of this reduction in debt came from consumers reigning in on Credit Cards, always a good sign.

It appears that Americans have worked hard at building up their financial house during the recession, with all the “bad” indicators now at historic lows.  At the same time, there’s been an increase in spending (just not debt based) and an increase in employment.

The blog ends on an optimistic, but cautious note, which we share.

Americans’ spirits have been boosted in recent months by the surging stock market, rising home values and a decline in gasoline prices. But some economists say spending likely won’t hold up at current levels this year unless workers secure larger wage gains.