Investors wary of program to revive consumer lending

Investors wary of program to revive consumer lending April 9, 2009

Posted by BDO in News.
Tags: beating, consumer, Debt, economy, financial, government, lending, race
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As we commented on the new $1.2T consumer lending project the government started to convince us to take on more debt, it seems for the month of March it fell on unmovable consumers.

Only $1.7 billion in government support for credit card loans and auto loans was supplied in the second month of the Term Asset-Backed Securities Loan Facility, or TALF. That is down from $4.7 billion in the first month, and the Federal Reserve and Treasury Department ultimately envision the program deploying up to $1 trillion to support all sorts of lending.

This is great news, because consumers, for now, are not as willing to take on more loans. But this is only the first month. As the months go by and the economy comes back online, how many more will be enticed by the “low monthly payment” to enslave themselves to even more debt?

Let it not be so with us. Let us not spend more than we earn. Let us live within our means and experience the freedom of owning and holding on to our cash. Let us not give our hard earned money and power away to Visa, Mastercard, or whatever name the loan company calls itself. We are all on a financial marathon, let us run the race set before us unencumbered by debt that weighs us down.

For more on this article, click here.

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