Credit counselor says be careful about overspending, despite calls to help economy

Government officials have called on American consumers to start spending again, to pump up the sagging economy. Sioux City credit counselor Don Demry says that’s fine, but not advice everyone should take.He’s seen a sharp increase in people coming in for credit counseling, already overloaded with credit-card debt, and they should think twice before they spend more. Demry can understand why people may hanging onto their pocketbooks, with layoffs in the area and more looking for works.Demry thinks people are retrenching, trying to eliminate their debt and save money for any future emergency. Demry says since the recent terrorist attacks, Congress has tabled discussions on making it harder to file for bankruptcy.He says it’ll make Chapter 7 easier, since the proposed change would have forced more into Chapter 13 which includes partial payback. Demry says even before the attacks, the nation was on track for a record number of bankruptcy filings this year.