U.S. consumers are borrowing again. In fact, the largest one-month increase in over a decade happened in March. A major reason for the jump is more people returning to the classroom, student loan debt continues to rise above the levels of credit cards.
There are people happy about the increase in borrowing. They belong to the school of thought that consumer confidence must be on the rise. Therefore, increased debt is a metric for a healthy economy.
Another school of thought is … are you crazy? Stop spending if you do not have the cash and a savings totalling 6 months of your expenses. If you don’t have that savings then stop. Seriously. Stop.
Which school of thought do you land?
PS. Kudos to those of you returning to the classroom. I hope the additional training will help you land a wonderful job. Best of luck.