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Asset Preservation Advisors


State: GA

APA’s philosophy is to work closely with our clients to develop an in-depth understanding of their unique needs and objectives. We then customize a municipal bond portfolio that best meets their specific goals and needs. APA manages high quality municipal bond portfolios in four strategies: Short-Term, Intermediate-Term, High Income, and Taxable.

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Consumer Borrowing Up in January--Good for the Economy?

| BY Donald Liebenson


Driven by demand for auto and student loans, consumer borrowing rose by a more than expected $17.8 billion in January, the Federal Reserve reported Wednesday.

This marks the fifth consecutive increase in consumer borrowing. The gains during this period were the largest in a decade and propelled consumer borrowing to a seasonably adjusted $2.5 trillion, which is only $70 billion below the July 2008 peak of $2.582 trillion,

 The category that measures demand for auto and student loads increased by nearly $21 billion, the largest increase in this category in more than a year. Borrowing on credits cards fell $2.9 billion in January after four months of gains.


Growth in consumer credit can be a double-edged sword. On the one hand, it might indicate growing confidence in the economy as consumers responsibly borrow to make major purchases. The Conference Board reported last week that consumer confidence rose in February to the highest level in a year. On the down side, too much debt could inhibit consumer spending, which accounts for about 70 percent of the economy.

A February survey of investors conducted by Millionaire Corner found that reduction of personal debt was the most significant concern for 20 percent of those under 40 as well as for those between 41-50.

An steadily improving job market may be emboldening households to take on more debt. First time claims for unemployment have been at near four-year lows in recent weeks. Unemployment edged down to 8.3 percent in January, while the economy added 243,000 jobs. Economists are forecasting an increase of 210,000 new jobs in February. The government report will be released on Friday.

About the Author

Donald Liebenson

Donald Liebenson writes news and features for Millionaire Corner. He has been published in the Chicago Tribune, The Chicago Sun-Times, The Los Angeles Times, Fiscal Times, Entertainment Weekly, Huffington Post, and other outlets. He has also served as a marketing writer for Chicago-based Questar Entertainment and distributor Baker & Taylor.  

A graduate of the University of Southern California, he is married with a college-age son. He also writes extensively about entertainment.