Ahhh a true example of bittersweet: American’s are acquiring less debt, but only because they can’t afford it!  Interest rates have skyrocketed because people don’t want heavy loans hanging over their heads, if they can even get approved in the first place.  In a similar fashion, consumers are also pulling back on spending which is in-turn fueling this seemingly never-ending economic crisis.  As a small business owner the real worry is, will this affect you?

Regardless of what goods or services you offer, chances are you will feel this.  As sellers of consumer products we like debt- not in our hands but in those of our customers.  While buyers are fronted money from credit card companies, we still see it and business is just dandy.  However, when consumers run out of cash and stop using credit cards, we suffer.  And when we suffer, the economy hurts.  And when the economy hurts, consumers a.k.a. spenders are affected.

In essence, with or without debt, businesses right now are hurting.  What will you do about it?

Check back tomorrow for ways to succeed as American’s cut spending