Credit Card Debt Jumps in May
This entry was posted on 7/10/2007 11:17 AM and is filed under Credit Card,Management.
June 9, 2007: The Federal Reserve reported today a surge in credit debt, which rose at a rate of 9.8% in May, contributed to a jump consumer credit to an annualized rate of 6.4%. As of April, the annualized debt rose just 1.1%. The advance doubled what analysts expected.
The jump in credit card was the largest since November 2006.
Auto loan debt also rose in May at a 4.4% rate, following a 1.7% gain in April.
Although debt was expected to increase, the amount of increase surprised many economists who projected that the growth in consumer credit could continue a slow-down trend which began in October. The overall economy grew at a lackluster rate of 0.7% in the January-to-March quarter, the weakest showing in more than four years. The weakness is attributed to an anemic housing market and rising gasoline prices. Consumer spending, however, should help the national economy recover in the second quarter.
