US Consumer Credit Climbs

consumer credit in the United States increasesThere was an increase of just over $18 billion in consumer credit this February – higher than expected and a considerable jump up from the $12.7 billion increase in January.

With home values now higher and the increased price of stock, it appears many Americans feel more confident about taking on additional loans.

Also, a decreasing percentage of younger workers in the labor force seems to have encouraged – or forced – many to borrow in order to gain further education. In fact, Non-revolving debt – of which student debt is a part – grew by the highest amount since 1996. The number of worker payrolls increase by a modest 88,000, the lowest gain in almost a year.

Automobile sales continue to grow – likely due in part to reduced interest rates – with General Motors claiming it’s best March sales figures for 5 years.

Homeowners are enjoying higher property values, with over a million and a half getting back to positive equity last year. For a more in-depth analysis, please see this report over at bloomberg.com.

Philip

4 Comments

  1. I can tell by the number of pre-approved credit card applications I’ve been getting lately. Companies are willing to extend more credit more often now.

    • I’ve also been getting a lot of refinance offers now, but just a couple of months I could find any bank that was even willing to talk to me about refinancing. I’m happy because I felt that the old lending attitudes were unfair and restrictive, but I hope this sudden relaxation doesn’t create another bubble.

  2. I have no idea what I can do to get out of debt, and others are taking on more? Wow… I wasn’t expecting to hear such news.
    I will stick to my opinion though, as long as one is in debt, one is not free.. I can’t wait to be free again!

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