Americans step up credit card use sharply in May
News from Fox News:

Americans put more on their credit cards in May than in any single month since November 2007, one month before the Great Recession began.

But overall credit card use is still well below where it was just before the downturn. Economists say May’s increase was likely a temporary response to weaker hiring and poor wage growth and not a sign of sustained confidence in the economy.

“We might see additional increases in credit card debt in the coming months,” said Paul Edelstein, director of consumer financial economics at IHS Global Insight. “But they won’t match the May surge.”

Consumer borrowing rose by $ 17.1 billion in May from April, the Federal Reserve said Monday. The gain drove total borrowing to a seasonally adjusted $ 2.57 trillion, nearly matching the all-time high reached in July 2008.

Borrowing has increased steadily over the past two years. But most of the gains have been driven by auto and student loans, which rose to a record level of $ 1.7 trillion in May.

Consumers cut back sharply on credit card debt during the recession and immediately after. Only in the past year have they started to put more on their credit cards and the gains have mostly been modest.

That changed in May when the measure of credit card debt jumped by $ 8 billion. Still, the level of debt for that category…………… continues on Fox News

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Americans step up credit card use sharply in May
News from The Associated Press:

Americans step up credit card use sharply in May

WASHINGTON (AP) — Americans put more on their credit cards in May than in any single month since November 2007, one month before the Great Recession began.

But overall credit card use is still well below where it was just before the downturn. Economists say May’s increase was likely a temporary response to weaker hiring and poor wage growth and not a sign of sustained confidence in the economy.

“We might see additional increases in credit card debt in the coming months,” said Paul Edelstein, director of consumer financial economics at IHS Global Insight. “But they won’t match the May surge.”

Consumer borrowing rose by $ 17.1 billion in May from April, the Federal Reserve said Monday. The gain drove total borrowing to a seasonally adjusted $ 2.57 trillion, nearly matching the all-time high reached in July 2008.

Borrowing has increased steadily over the past two years. But most of the gains have been driven by auto and student loans, which rose to a record level of $ 1.7 trillion in May.

Consumers cut back sharply on credit card debt during the recession and immediately after. Only in the past year have they started to put more on their credit cards and th…………… continues on The Associated Press

… Read the full article