According to the Commerce Department, consumer spending is up .6%, an increase of .2% from February.

Incomes had grown in March at the fastest pace in six months. Although this may indicate the economy is growing stronger, CreditFederal.com warns consumers about using their increase income merely to get further into debt.

Consumer spending is indeed a key factor for molding economic activity, and while it helps strengthen the economy, Credit Federal advises consumers to not spend the full amount of income increases on luxuries. Instead, investing a percentage of the extra income could be more worthwhile for both consumers and the economy.

Incomes increased .8% in March, following a .3% increase in February - the largest gain since September.

Factors for income increases: Payments from the new Medicare prescription drug plan helped to boost incomes in March, whereas actual wages grew only .4% for the second month in a row.

Spending and income figures are not adjusted for inflation. When adjusted for inflation, consumer spending rose .2% in both February and March.

Despite higher interest rates and rising energy prices, the economy does appear to be strengthening. But should the economy falter, consumers who are over-spending could find themselves candidates for debt consolidation - or more severely - debt settlement, either of which could further plummet a falling economy.

According to CreditFederal.com, to maintain the upward rising economy, consumers need to be wary of excessive potential debt, and consider improving their personal finances and investing in the economy (stocks, bonds, etc) instead of digging a potential debt hole by splurging on too many luxuries.