Consumer credit increased 4.5 percent in 2004. Loan-to-Value ratio fell on new car loans last year. (PRWEB) March 4, 2005 -- According to a recent Federal Reserve press release, consumer credit increased again in 2004. We have all heard that Americans put too many items on credit, well last year Americans increased that amount by another 4.5 percent. In the fourth quarter alone, consumer credit rose at 3.75 percent, down from 6.25 percent in the third quarter. These statistics reflect American’s appetite for the consumption of revolving and non-revolving credit accounts. Our use of credit cards, new car loans, finance company loans, and revolving commercial accounts increased again last year. The American mentality of “buy now, pay later” triumphed again in 2004. Loan-to-value ratios fell steadily for new cars in 2004 as well. This means bigger car loans for less car value for the consumer. Consumers should be very wary of placing items on credit. If the Fed increases interest rates, American households can see more household income spent on interest for these accounts. The end result being that these items could cost a lot more tomorrow than they cost today. You can read more about how all this affects mortgages and consumer credit at http://www.simpletesting.com/mortgages.