Maybe We Are Learning

[crokett]

Household debt falls for the first time ever. Well at least since 1952 when data collection was started.

http://money.cnn.com/2008/12/11/news...unds/index.htm

[Kristofor]

Debt declined 0.8%, Net worth declined 4.7%.

I don't doubt that there's some learning involved, but I suspect a bigger part is lenders cutting off credit. Every day people are paying off their cars, appliances, etc. that they financed, but far fewer consumers are putting new purchased on credit whether they want to or not. Credit card companies are also slashing limits even on customers with good credit who never max out their cards.

So, I agree it's a good thing, but lets wait and see if the trend continues when people have the option of being less financially responsible again.

[Ed62]

I learned that lesson years ago. Most people don't.

Ed

[Uncle Cracker]

You can expect household debt to fall... Nobody has any credit.

[LinuxRandal]

I call .8% a SLOW learner!