Consumer Debt Rises For Eighth Straight Month

July 10, 2011
ConsumerAffairs.com 
credit card news

The Federal Reserve reports that consumer credit grew in May for the eighth month in a row, primarily as a result of credit card use. According to the data, credit rose by $5.08 billion after a revised $5.67 billion gain in April. Economists say that many consumers are using their credit cards to purchase necessities such as gas, groceries, and other day-to-day needs. Revolving debt, which includes credit cards, rose by $3.37 in May after shrinking $877 million in April, marking the first gain this year and the biggest jump since June 2008. Non-revolving debt also was higher, climbing $1.71 billion in May after jumping $6.54 billion the previous month. To keep credit card debt under control, the Center for Responsible Lending recommends that consumers always pay more than the minimum amount due on the monthly bill. CRL says that doing so can save a consumer as much as $2 for every extra $1 they pay.
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