Consumer Spending Still Rising

Consumer confidence in the economy is at an all-time low and charge-offs and delinquencies are rising, yet consumer speanding is still not slowing down.

What does this mean?

Probably that consumers are relying on credit to pay for necessities.

According to this InsideARM article:

"As the probability of any significant slowdown in near-term credit card spending remains unlikely – for the first quarter of 2008 credit card debt increased at a 6.7 percent annual rate – consumers will rely more on credit and have less cash to pay down debt as energy and food prices rise, impacting collections for both creditors and the accounts receivable management industry."

Read the full article here: http://www.insidearm.com/index.cfm?objectID=311FAEC4-C4EF-1348-2A6B9D5C050B2C3A