Tuesday, July 12, 2011

Consumer Credit Soars On Largest Card Debt Jump In Three Years

Consumer credit rose by $5.08 billion in May, marking the eighth straight monthly increase, as credit card debt had its largest gain in three years, according to the Federal Reserve's monthly G.19 report.

Revolving credit, 98% of which is credit card debt, soared by $3.36 billion after declining by $876.7 million in April. It marks the biggest increase in credit card debt for any month since mid-2008.

The figures suggest a willingness to keep borrowing despite a tight job market and unstable economy. It's possible the rise is occurring as consumers facing limited job prospects turn to credit cards more often to pay bills. (emphasis mine)

Non-revolving credit, which includes categories such as student loans and auto loans, expanded by $1.7 billion in May after shooting up by $6.54 billion in April.

The total of all consumer credit outstanding in May reached $2.432 trillion, up from a total of $2.427 trillion in April.

1 comment:

  1. Is your business losing money because customers are unable to pay? This is where the Consumer Credit program for in-house payments comes in! This is a great benefit to customers since your customers’ payments are guaranteed by Consumer Credit. In addition, your clients will be able to get their needed services and pay for everything over an extended time period. The best part is that all of this takes about as much time as processing credit cards!