So Now Credit Card Debt is a Good Thing???

So, today I learned that Americans increasing credit card debt is a good sign for the economy.

U.S. credit-card debt posted the second solid increase in a row during December, an indication Americans stuck with meager wage gains borrowed to pay for their holiday celebrations....But the Fed data are important for the clues to behavior by consumers, whose spending helps propel the economy.
The two solid gains in revolving credit during November and December came during the holidays — a sign consumers pulled out credit cards to buy gifts and make other seasonal purchases.

Isn't that wonderful. People who apparently used to pay for their holiday celebrations with cash, this year had to go further in debt for the same celebrations. But, slapping down the Visa credit card rather than the Visa debit card means that we are all doing great.

The upturn in card debt could be another sign that consumers are growing more confident about the economy, or at least about their personal job security.

Huh?

Wasn't it just a few years ago that we were told that using credit cards for expenses such as holiday celebrations was unhealthy and an indication that people's finances were getting worse, not better:

Finding themselves strapped for cash... Americans are increasingly turning to credit cards to cover gas, groceries and other living expenses....
Faced with soaring costs for food and fuel, people find they must charge more to make ends meet.
"They are not able to increase their income, but their expenses are going up, so the credit card becomes a way to cope," said Sara Gilbert, executive director of the Consumer Credit Counseling Service in Fort Collins, Colo.

Odd how that Wall Street Journal piece didn't mention that people needed credit cards to cope with higher food and fuel prices we have felt over the past few years.

The 2008 meltdown, we were told, was due in part to high personal credit card debt...

As the economy slows and unemployment rises, consumers are defaulting on credit-card payments more often. And though that trend is unlikely to create a crisis in line with the mortgage fallout, it's still a headache for banks that are already hurting.

Read more here: http://www.mcclatchydc.com/2008/10/28/54880/are-credit-cards-the-next-collapse.html#storylink=cpy

...and that credit card debt was a sign of living beyond our means?

“For millions, they were living in a bubble,” says Odysseas Papadimitriou, CEO of CardHub, referring to Americans living on home equity and credit card debt five years ago. “If we end up overleveraging ourselves again, it’s going to be the same thing repeated in a few years.”

"Millions of ordinary people, unwilling to relinquish a bubble-era mentality of living beyond their means, will have borrowed beyond their ability to repay. If this sounds similar to the subprime mortgage crisis, that’s because it is"

Even Obama himself warned that he expect(s) consumers to live within their means and pay what they owe.

But now that Obama has saved us from the evils of the credit card companies, I guess it is in vogue to start slapping down the plastic again.

Well, if anyone wants to lecture us on living beyond our means, it might as well be Obama. He knows better than anyone how to put too much debt on the credit card.