Holiday Season Sees A Surge In Credit Card Borrowing

Thursday, February 23rd, 2012

Americans continue to borrow in order to pay for expenses during the holiday season and this has been indicated by the US credit card debt that has posted a solid increase for the second time in a row in December. The level of consumer credit has increased and the outstanding has gone from $19.31 billion to a whopping $2.498 trillion, according to the available data from the Fed Reserve. When Dow Jones Newswires had surveyed the economists, they had only forecast an increase of $7.5 billion.

There was an increase in revolving credit that is also inclusive of credit card debt. In the month of December, it had increased by $2.76 billion to $800.98 billion. In the month of November, the revolving credit had risen to $5.58 billion, which would be the biggest increase, since March 2008.

There has been an increase in non-revolving credit and it has risen by $16.55 billion to $1.697 trillion. This is an increase following a huge surge in November, and has been the biggest since November 2001. It is being driven by the fed student loans, and has been steadily increasing since the last one year. This is a sign to indicate that the high unemployment rates in the US are driving people back to schools.

However, the consumer credit report does not include real-estate secured loans or home mortgages. The fed data is an important tool that will help give a better insight into consumer behavior. It is the consumer spending that helps in giving the economy a thrust.

After a long period of recession, the economy is slowly recovering. The recession had come to an end sometime in mid-2009. There was a slowdown in growth just last year, but it managed to pick up sometime in the later part of 2011. The growth is likely to be moderate during the beginning of this year.

Consumer spending has been restrained due to the prevailing unemployment rates as well as falling housing prices. According to reports from the Labor Department, job openings had risen in the month of December. Even the economists had stated that this was in tune with the underlying trend; where the job openings are expected see a bigger rise when compared to hiring. Cooper Howes who is the analyst at Barclays Capital states that this suggests just one thing – the mismatched skills are continuing to create a friction in the job market.

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.