Increase in Consumer Borrowing

BORROWING VO 5

MASON CITY, IA – Many analysts point to consumer trends as one way to get an understanding of what’s going on with our economy.

Recently, we are seeing an increase in consumer borrowing, which is seen as a positive sign for the direction the economy is going.

Borrowing rose by nearly 20 billion dollars in May and the majority of that was reported to be student and auto loans.

Local credit consultants say that these trends mean that people are feeling more confident about spending again, which is an improvement from earlier in the year.

Branch Manager at Consumer Credit Counseling Services, Kathye Gaines said, “we are seeing more people who are spending, some are borrowing, some are still paying with cash, some are using their savings accounts so we’re seeing that there is a change and there is more spending going on.”

While counselors say it’s a positive thing to have more confidence, they also recommend that consumers still need financially responsible with their money and not overspend.

“We are seeing more of that (borrowing) then we have in the last year and people are saying you know we’ve struggled so hard, we know things are still tough, we see things are turning around but we deserve to have a few extra things,” Gaines said.

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