Reports show that U.S. consumer credit spending increased approximately 10 percent towards the end of 2011 in both revolving credit, such as credit card use, and non-revolving credit, such as major loans. This is the highest increase since 2001. During November 2011, outstanding revolving credit increased about $5.6 billion, while non-revolving credit, such as student and auto loans increased by about $14.78 billion. The government lending out student loans has reportedly made the largest increase, raising 31.9 percent. This generated an increase of $6.4 billion from student loans, alone.
There are many speculations as to the reasons behind this surge of consumer credit use. Some economists attribute this surge to consumers being willing to risk spending because they are more comfortable with their financial stance than they have been in the past. It is also said the recent consumer credit surge may be a sign that U.S. consumers are being forced to use their credit cards to fund ‘necessary expenditures.’ In contrast, other economists believe the increase in consumer credit spending is a result of banks instating new fees on debit card use and the attractive ‘cash back’ bonuses offered by credit card companies.
To read more on this story visit: http://www.reuters.com/article/2012/01/10/us-usa-economy-consumercredit-idUSTRE80823O20120110
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced attorney who can advise you of all of your options. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia, P.A. website at www.miamibankruptcy.com.
