Remarks by the President at Meeting with the President's Council on Jobs and Competitiveness | The White House
Just to brief you on this meeting: One main point made to the president is that consumer spending patterns are changing. People are not utilizing all of the available credit extended to them--either by not taking on new debt or by not maxing out cards.
This pattern has led to 75 percent unused consumer and business credit. "Alarming" was the word used to describe this emerging pattern. People are paying balances down and future extensions of credit are being recinded as lenders are becoming more conservative with the lower-middle class or the working class. It was determined by the advisory group that lower middle class consumers should have more access to credit.
Fourth quarter 2009 credit card write-offs were at 10 percent. A write-off is when credit card balances are left unpaid and companies write-them off at the end of the fiscal year as a loss. By the end of 2009 they had fallen to 7.5 percent and by January 2010 write-offs fell to 3.8 percent, which is normal for the credit industry.
Overall the credit industry is described as "bright." Some people spend to save and some spend to pay down debt.
Online spending is impacting traditional retail sales. Even with traditional retailers, the online spending is the biggest growth for them.
This advisory group reports to the president and was formed two years ago.
Feel free to view the video to find out more about how business and retail sales are affecting the U.S. economy. This is clarity in government at it's best.
West Wing--week in review with the President
This pattern has led to 75 percent unused consumer and business credit. "Alarming" was the word used to describe this emerging pattern. People are paying balances down and future extensions of credit are being recinded as lenders are becoming more conservative with the lower-middle class or the working class. It was determined by the advisory group that lower middle class consumers should have more access to credit.
Fourth quarter 2009 credit card write-offs were at 10 percent. A write-off is when credit card balances are left unpaid and companies write-them off at the end of the fiscal year as a loss. By the end of 2009 they had fallen to 7.5 percent and by January 2010 write-offs fell to 3.8 percent, which is normal for the credit industry.
Overall the credit industry is described as "bright." Some people spend to save and some spend to pay down debt.
Online spending is impacting traditional retail sales. Even with traditional retailers, the online spending is the biggest growth for them.
This advisory group reports to the president and was formed two years ago.
Feel free to view the video to find out more about how business and retail sales are affecting the U.S. economy. This is clarity in government at it's best.
West Wing--week in review with the President
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