Consumer Credit Increases

Posted by Bill Crowley on June 8 2011 @ 9:08 am

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Consumers may be getting a better handle on their credit card debt. A recent study from the U.S. Federal Reserve showed consumer borrowing increased for the seventh month in a row.

Credit increased $6.25 billion in April, compared to March's figure of $4.82 billion increase.

Overall, economists surveyed by Bloomberg thought credit would increase by an average of $5 billion. Much of the improvement can be attributed to the greater demand for vehicles, as well as rising unemployment worries.

"The consumer is still leery about running up charge-card balances after the greatest financial crisis since the Great Depression," Chris Rupkey, Bank of Tokyo-Mitsubishi UFJ's chief financial economist, told the news source.

Revolving debt decreased by $944 million during the month, which was a sizable change from March, when this category increased $37 million. The category consists of mostly of credit card debt, according to the news source. Non-revolving debt grew $7.19 billion in April. This category includes auto loans and student loans.

The study's results may be a sign that consumers are finally getting a handle on credit card debt. This could be a good sign for the economy and consumer finance, in general.

Timely articles written by the Editors at DRC

New government regulations in place for consumers in need of debt relief for credit cards and other unsecured debts.

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