Consumers’ Credit Card Debt Exceeds Economists’ Estimates

Increase shows consumers’ financial confidence in borrowing and spending.

9/12/2019 10:00 AM

NewsCreditors
Consumers’ Credit Card Debt Exceeds Economists’ Estimates

The Federal Reserve’s most recent data reveal that July’s credit card debt surged to a rate most often associated with the holiday shopping season.

“As far as American's finances are concerned, the current situation is not too encouraging,” said Jill Gonzalez, senior analyst at personal finance platform WalletHub, told NBC News. “We started the year owing more than $1 trillion in credit card debt, and although we paid off a large chunk in the first quarter, that could be a sign that more debt will be taken on by consumers."

The Fed’s monthly consumer credit report shows revolving credit increased 11.25% in July.

“In terms of revolving debt, we see spikes like this every so often, but they don’t jump by double digits all that much,” said Matt Schulz, chief industry analyst at CompareCards, in the article.

Bloomberg reports the July credit increase is the highest since late 2017. The monthly increase in total credit tracked by the Fed, $23.3 billion, exceeded the expectations of economists surveyed by Bloomberg.

Revolving debt, including credit cards, increased by $10 billion, which is the highest since November 2017, according to Bloomberg. Non-revolving debt, including student loans, increased $13.3 billion in July after a $14 billion surge the previous month.


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

Consumers’ Credit Card Debt Exceeds Economists’ Estimates

The Federal Reserve’s most recent data reveal that July’s credit card debt surged to a rate most often associated with the holiday shopping season.

“As far as American's finances are concerned, the current situation is not too encouraging,” said Jill Gonzalez, senior analyst at personal finance platform WalletHub, told NBC News. “We started the year owing more than $1 trillion in credit card debt, and although we paid off a large chunk in the first quarter, that could be a sign that more debt will be taken on by consumers."

The Fed’s monthly consumer credit report shows revolving credit increased 11.25% in July.

“In terms of revolving debt, we see spikes like this every so often, but they don’t jump by double digits all that much,” said Matt Schulz, chief industry analyst at CompareCards, in the article.

Bloomberg reports the July credit increase is the highest since late 2017. The monthly increase in total credit tracked by the Fed, $23.3 billion, exceeded the expectations of economists surveyed by Bloomberg.

Revolving debt, including credit cards, increased by $10 billion, which is the highest since November 2017, according to Bloomberg. Non-revolving debt, including student loans, increased $13.3 billion in July after a $14 billion surge the previous month.


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

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