Household Debt Increases

Household debt increased according to the Commerce Department.  This can both  be encouraging and discouraging.  Encouraging from the standpoint that people are borrowing again so their outlook (along with lenders) must be positive.  Discouraging from the standpoint that savings has dropped thus indicating the the increase in credit is happening at the expense of savings. 

After the global economic slowdown that has occurred over the last few years, I tend to believe the the increase in credit shows that confidence is improving.  My thinking lies with the idea that after spending the last three to five years attempting to deleverage while worrying about job security, consumers are showing some confidence by increasing their borrowing.

Let see what the confidence numbers will look like soon.