Consumer Confidence Down - Credit Spending Up

Although personal income rose slower than inflation in January, credit card spending rose for the second straight month with consumers spending twice as much on credit cards as the month previous.

With the collapse of the subprime mortgages, consumers who are finding it hard to qualify for loans are seeking alternate financing routes, using credit cards to span the financial gaps.

Many see the trend of consumers turning to credit cards to make ends meet as the first herald of a coming recession in the economy.

With bad news in the jobs sector and on Wall Street, consumer confidence sank to 33.1 last week, down from 48.5 in February.