Balances On Consumer Credit Cards Bumped Up During November

Tuesday, January 10th, 2012

Numbers released by the Federal Reserve showed that consumer credit card balances rose in November for a third consecutive month as Americans went into the holiday season with their plastic pulled out and ready to spend. However, many were hesitant to overspend despite a decrease in the nation’s unemployment rate.

The Federal Reserve released data which indicated that consumer credit card balances rose all throughout November for the third month in a row. According to the most recent G.19 consumer credit report, there was an 8.5% increase in the amount of revolving debt as more and more individuals opted to spend using their credit cards. Overall for the month of November, revolving debt across America swelled by $5 billion to a grand total of $798.3 billion. Nearly all the revolving debt accounted for in the report is comprised of credit card debt.

One senior economist at the world’s biggest economics organization HIS Global Insight said that the latest G.19 results indicate an improved attitude throughout American Households on the topic of finances and the economy which make them more comfortable with pulling out their credit cards at the register. This particularly rings true in the month of November leading into the holidays when people are programed to go into spending mode. “It’s a month where you kick off the sales for the holiday season,” the expert said.

Included in the G.19 report which is released by the Fed on a monthly basis is non-revolving debt such as home loans, auto loans and student loans. November saw an increase in non-revolving debt as well, which soared some 10.7% to $1.68 trillion. As a whole consumer credit, which combines both revolving and non-revolving debt, grew by 9.9% in November to $2.48 trillion. This was the third straight month for this increase, as well.

The National Retail Federation noted a four-and-a-half percent jump in year-over-year consumer spending during November, which caused them to plump up their overall holiday spending estimates.

“Consumer spending this season has surpassed expectations,” said Jack Lleinhenz, The National Retail Federation’s Chief Economist in a statement released by the company.

He went on to say that, “Many shoppers continue to stick to their budgets and buy only what they need.”

Indeed, many experts note that the overall spending by consumers was modest at the end of 2012 which signifies that a majority of shoppers opted not to spend more during the holiday season than they could afford.

It’s worth noting that the unemployment rate also dipped in November to 8.6% which is the lowest figure since March of 2009.

Latest Other Card News

Monday, June 6th, 2016
If your wallet is bulging with store loyalty cards, there’s good news for you from Samsung Pay. The most widely accepted mobile digital wallet system in the United States is now ...
Tuesday, April 12th, 2016
Springtime is the season for house hunting, but many people planning to move this year say they’ll rent, not buy, their new digs.
Tuesday, January 5th, 2016
Online banking has revolutionized the way people do business with their banks, and one result is that fewer and fewer folks are actually stopping in to branches to do things like ...
Tuesday, December 8th, 2015
A new credit card from Barclaycard offers cash back rewards, as well as a redemption bonus when cardmembers redeem their rewards.
Monday, June 29th, 2015
Nordstrom agreed to sell its existing U.S. Visa and private label consumer credit card portfolio to TD Bank Group.
Pacific Credit Group Emporium Black Card
Copyright © 2001-2016 BestCreditOffers.com All Rights Reserved.

* The BestCreditOffers.com.com webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. BestCreditOffers.com.com does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the BestCreditOffers.com.com website are property of their respective owners.

BestCreditOffers.com makes every effort to keep information up to date and accurate. However, the information regularly changes and is presented without warranty. Therefore, we strongly recommend all our readers to visit the credit card application page by clicking "Apply Online!" button to review the detailed credit card's terms and conditions. Note that BestCreditOffers.com may be compensated by the credit card issuers when the readers apply for a credit card through this site.

BestCreditOffers.com is an independent, advertising-supported website which receives compensation from the credit card issuers and companies whose offers appear on the site. Compensation may impact how and where products appear on our site, including, for example, the order in which they may appear on the site pages. BestCreditOffers.com does not review or list all available financial or credit offers.

User Generated Content Disclaimer: These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.