Research Shows Decline in Borrowing Money

Borrowing in America today

Recent research is showing a decline in borrowing money. The Federal Reserve announced that Americans borrowed less for a tenth consecutive month. This marks the lowest amount on the records going back for seven years. It seems that most Americans are getting smarter about credit after the recession taught a hard lesson about credit.

In former years credit cards were thought of as emergency options when people needed money. People stuffed one credit card away for those times when cash wasn't readily available. Once the recession began, people were surprised at how credit lending companies dealt with them. Many good customers saw their credit limits slashed. Other customers had huge hikes in their interest rates. Still others saw added fees attached to their bills.

The lessons learned on credit

The Federal Reserve reported that total borrowing dropped by $17.5 billion in November, which was much more than projected. In fact, economists calculated the fall of borrowing at only $5 billion. It seems that Americans learned the lesson on credit and new studies are giving reasons for their decline in borrowing. Some are fearful about their job prospects for 2010 and they are trying to replenish savings that were ravished by the recession. It was reported on Friday that employers cut another 85,000 jobs in December and that brings the total job losses in the country to 7.2 million since December of 2007. … click here to read the rest of the article titled “Research Shows Decline in Borrowing Money“