Income steady, debt rising as consumers prepare for holidays, FFN says.

San Mateo, Calif. (PRWEB) December 17, 2012

The good news, in some ways, is that consumer confidence is up and that optimism sometimes can have positive effects on the overall economy, said Kevin Gallegos, vice president of Phoenix operations for Freedom Financial Network (FFN). However, it is worrisome to see debt increase without accompanying boosts in income and employment.

The latest financial data released by national sources indicate that slightly lower levels of unemployment (due primarily to fewer people seeking work), slightly higher personal income, and slightly higher personal spending are accompanying higher consumer debt this quarter.

The Conference Board Consumer Confidence Index is currently at its highest level since February 2008. Yet nearly 39 percent of respondents to the consumer confidence survey believe jobs are hard to get.

In terms of spending and debt data, at this point, we are looking at data from the fall while consumers now are entering into the largest credit card spending season of the year. Hopefully, consumers will keep a sensible rein on their wallets over the holidays, but only time will tell how they react, added Andrew Housser, FFN co-founder and CEO.

Recent financial data as reported:

1.Total consumer debt back up. After last quarters uncharacteristic year-over-year decrease in total consumer debt, total consumer debt rose again in August, September and October. In October, the most recent month on record, total consumer debt (excluding mortgage debt) increased to $2.75 trillion.

2.Revolving debt bounces up and down. Total consumer revolving debt which includes credit card debt rose in August, declined in September, and rose again in October to a total of $857 billion.

3.Non-revolving credit continues to grow. Non-revolving consumer debt which includes auto and RV loans and education loans continues to climb steadily, reaching yet another all-time high of $1.90 trillion in October. Annual growth in non-revolving credit continues to range between 7 and 9 percent.

More:

Freedom Financial Network Quarterly Comment: Will Confident Consumers Risk Over-Spending?