If you’ve been reading business news or listening to an economics podcast over the past two years you’ve likely been led to believe that post-recession consumers are smarter, more frugal and finally scurrying away some money in an account rather than engorging themselves on high-limit, high-interest credit cards.
At the heart of this is a surface level reading of the overall consumer revolving debt load. Q1 2009 showed the national consumer revolving credit tab at just over $923 billion. Q4 2010 showed a total consumer revolving credit debt of $825 billion. Hooray. Isn’t it nice to see the average consumer wise up and start to lower his or her astronomical credit card bill? This would be appear to be especially pleasing since easy credit access across the income spectrum was a significant contributor to our recent economic woes.