US consumers cut back on credit card use in June, borrowed more to buy cars …
News from Washington Post:

WASHINGTON — Americans cut back on credit card use in June, a sign that high unemployment and slow growth have made some more cautious about spending.

Still, total consumer borrowing increased as many kept taking out loans to buy cars and attend school.

Consumer borrowing rose by $ 6.5 billion in June from May to total $ 2.58 trillion, the Federal Reserve said Tuesday. That’s just below the all-time high reached in July 2008.

Auto and student loans rose by $ 10.2 billion to $ 1.71 trillion in June.

Credit card debt fell $ 3.7 billion to $ 865 billion. That’s only 1.6 percent above the post-recession low reached in April 2011.

Americans have been relying less on credit cards since the 2008 financial crisis and Great Recession.

At the same time, student loan debt has steadily increased. It has risen 54 percent since mid-2008 to total $ 902 billion as of March this year, according to the Federal Reserve Bank of New York.

Student loans now accounts for roughly 35 percent of all consumer debt, up from less than a quarter four years ago. That makes it the biggest source of consumer debt outside of mortgages.

The increase partly reflects high unemployment, which has led many Americans to seek better education and skills in a more competitive labor market.

“We are probably witnessing a shift in consumers’ atti…………… continues on Washington Post

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Credit cards 101: Helping college students build credit, avoid debt
News from Alexandria Echo Press:

American college students are swimming in a sea of credit card debt. Despite the CARD Act of 2009, which tightened laws on credit card companies that were doling out cards like candy to every college student on campus, a recent study shows that 70 percent of college students have credit cards. More than 90 percent of those students are carrying a monthly balance. Between 2004 and 2009, the average student credit card debt jumped from $ 946 to more than $ 4,100.

While the law now requires anyone under age 21 to have a co-signer on a credit card application unless they can show proof of adequate income, students need to be smart about credit, says the Minnesota Society of Certified Public Accountants (MNCPA). The on-campus credit card offers are tempting and may seem like free money, but they can spell disaster. Used correctly, credit cards can help build a solid credit report. Used incorrectly, credit cards can leave students with a financial burden that can last long after graduation.

Top 10 tips for students

1. Read the fine print. Get out your magnifying glass and read all of the little words at the bottom of the credit card application before you sign anything.

2. Understand the APR (annual percent rate of interest). When you read the fine print, you’ll see the APR the card will charge you on the balance if the full amount owed isn’t paid…………… continues on Alexandria Echo Press

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Related News:

US consumers cut back on credit card use in June
News from Kansas City Star:

By CHRISTOPHER S. RUGABER

AP Economics Writer

Updated: 2012-08-07T21:43:46Z

Ashley Hopkinson

In this July 18, 2012 photo, credit logos are seen on a downtown storefront as a pedestrian passes in Atlanta. U.S. consumers likely took on more debt in June, even as they largely kept spending in check. Economists forecast that consumer borrowing increased by $ 10.5 billion in June, according to a poll by FactSet. The Federal Reserve will release its report at 3 p.m. Eastern time Tuesday, Aug. 7, 2012.

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Credit Card Use Drops In June

Posted by administrator | 08/08/12 | Tagged Credit Card

Credit Card Use Drops In June
News from Huffington Post:







U.S. consumers cut back on credit card use in June, proving that more people are being cautious about spending.





















WASHINGTON — Americans cut back on credit card use in June, a sign that high unemployment and slow growth have made some more cautious about spending.

Still, total consumer borrowing increased as many kept taking…………… continues on Huffington Post

… Read the full article
.

Related News:

US consumers cut back on credit card use in June
News from The Associated Press:

US consumers cut back on credit card use in June

WASHINGTON (AP) — Americans cut back on credit card use in June, a sign that high unemployment and slow growth have made some more cautious about spending.

Still, total consumer borrowing increased as many kept taking out loans to buy cars and attend school.

Consumer borrowing rose by $ 6.5 billion in June from May to total $ 2.58 trillion, the Federal Reserve said Tuesday. That’s just below the all-time high reached in July 2008.

Auto and student loans rose by $ 10.2 billion to $ 1.71 trillion in June.

Credit card debt fell $ 3.7 billion to $ 865 billion. That’s only 1.6 percent above the post-recession low reached in April 2011.

Americans have been relying less on credit cards since the 2008 financial crisis and Great Recession.

At the same time, student loan debt has steadily increased. It has risen 54 percent since mid-2008 to total $ 902 billion as of March this year, according to the Federal Reserve Bank of New York.

Student loans now accounts for roughly 35 percent of all consumer debt, up from less than a quarter four years ago. That makes it the biggest source of consumer debt outside of mortgages.

The increase partly refle…………… continues on The Associated Press

… Read the full article


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