Bankruptcy & Foreclosures

While everyone seems to have spending on their mind this time of year, the truth of the matter is we need to pay careful attention to the economic signs all around before going overboard. Although the numbers are far from finalization, patterns are already proving that Americans are taking economic instability quite seriously this year through more conservative spending patterns.

The cost of oil influences our lives in more ways than the superficial (transportation, heating, etc.) As gasoline prices continue to climb to all-time highs, we are already witnessing spikes in the very early reaches of the holiday spending season. This pattern opposes the usual theme of flat line oil cost until much closer to the Holidays when travel is expected to increase. Experts view this as a sign of more conservative spending by consumers this year. In other words many of us are paying closer attention to our budgets and cutting out unnecessary travel either by consolidating more of our shopping into a single trip or using alternative means of shopping altogether (such as online purchasing).

Interestingly oil costs aren’t the only culprit for the collective tightening of our belts. A shaky housing market is also affecting spenders in two key ways. First the turbulent sub prime industry has many homeowners struggling to make their monthly payments on time. In these instances where consumers are barely making ends meet, it is clear that over exuberant spending simply isn’t an option. Additionally, lenders are also taking fewer chances in writing loans. This means that consumers who typically rely on tapping into their home’s equity (by refinancing) for additional spending power are out of luck as well.

I’ll be keeping close watch on these developing trends and provide updates as the numbers come in.