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Tuesday, February 8, 2011

More credit.. more debt.. and people are confident?

Today's big news lie comes courtesy of the Associated Press...

More Confident Consumers Break Out Credit Cards-  "Americans are putting more money on their credit cards after more than two years of cutting back, a sign that they are gaining confidence in the economy."

Um.. No

I think this headline from the UK paper Guardian is more truthful...

Credit cards used to pay mortgage or rent by 2 million people- "More than 2 million people have used credit cards (in the UK) to pay their mortgage or rent, an increase of almost 50% in a year, according to the housing and homelessness charity 'Shelter'... With an increased threat of unemployment and rising interest rates, the charity warns that many people will be starting the new year with the threat of homelessness hanging over them once they have exhausted the limited and expensive credit available to them through cards."

Though a UK paper, this is going on in the US in even greater numbers..

Here's another reason the AP article lies...

Credit Card Solicitations Are on the Rise (PRWeb) - "Credit card solicitations last year rose to 2.73 billion from 1.39 billion in 2009. That’s according to market research firm Synovate’s Mail Monitor. The credit card is back, with bigger and better offers than ever.  "The proverbial wheels of the credit engine are being greased once again," says Anuj Shahani, director of competitive tracking services for Synovate. Banks have saturated super-prime households and are again looking to subprime consumers to build up their revenues."

So if you add an additional 1.33 Billion more credit card solicitations in the mail in 2010 vs 2009, and the fact that the economic situation is so Bad for many people that they're paying their mortgage, medical bills, food and other necessities with their cards, then Yes, its no surprise credit card usage has gone Up...

But it has Nothing to do with confidence in people's day to day lives, their future or in this putrid economy.. Nothing~

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