McAlester News-Capital, McAlester, OK

Local News

Related Photos

  • U.S. consumers are tapping into credit this year in a big way, mostly to pay for vehicles or education.

    cc_debt.jpg
June 11, 2012

Consumers continue to use more credit

By Mark Huffman ConsumerAffairs.com

U.S. consumers are tapping into credit this year in a big way, mostly to pay for vehicles or education.

The Federal Reserve's monthly report shows consumer credit rose by $6.51 billion in April, the eighth month in a row that it has risen. It follows a $12.4 billion gain in March.

The gain in non-revolving credit – which covers car payments and student loans, recorded its biggest advance in the last three months.

Overall credit rose despite the fact that consumers put less money on their credit cards. Revolving debt – and credit cards make up the biggest segment of that – fell by $3.44 billion.

Greater discipline

While the economy needs consumers to spend – and credit card debt is usually a sign of spending – rising credit card balances are not necessarily a good thing for the long term. The latest report suggests consumers are working at paying down balances and are exercising greater discipline in using their plastic.

The rise in student loan debt might be a troubling sign, as the Consumer Financial Protection Bureau (CFPB) earlier this year warned total student loan debt in the U.S. now exceeds $1 trillion. The CFPB expressed the concern this level of debt might not be manageable in a tight job market where debt-burdened graduates have difficulty finding employment.

In issuing its “beige book” this week, the Fed noted that credit appears to be expanding, with lenders making more money available to creditworthy customers. It also reported that the economy appears to be expanding at a “moderate” pace.

Story provided by ConsumerAffairs.

Text Only | Photo Reprints
Local News
Seasonal Content
AP Video
Obama Offers Drone Strike Defense Raw: Heckler Interrupts Obama on Guantanamo A Slice of Apple History Up for Grabs Johnson: Don't Blame Islam or UK Policy Raw: 80-Year-Old Climbs Mount Everest Wash. State Man Arrested Following Ricin Scare Chain-Reaction School Bus Crash Injures About 50 Raw: Scuffles in London After Hacking Death Texas Students Coach Teachers on Fitness New Forecasting Tool Eyed for Hurricane Season Meet MJ, the Bike Riding Tabby Cat Britain Attack Believed Linked to Radical Islam Raw: Kevin Durant Tours Moore After $1M Pledge Man Shot While Questioned in Boston Probe Weiner Launches Bid to Become NYC Mayor School Storm Protection Spotty in Tornado Zones Moore Native Toby Keith Tours Tornado Damage
NDN Video
AK-47-wielding thug may be the most bumbling crook ever Oklahoma Survivors, Heroes Survey Damage Trout's cycle a boost for Angels Raw: New Video of Deadly Oklahoma Tornado Kim Kardashian Flaunts Pregnant Bikini Body in Greece NBA star pledges $1M to help tornado recovery Shakira's Shocking Talent Morgan Freeman falls asleep on air GRAPHIC: Blood-Soaked Machete Killer Caught on Tape Elin Nordegren Furious With Lindsey Vonn For Parading Kids in Public Camera Captures Climber As He Loses Grip And Falls Helen Mirren Meets with Dying Boy in Queen Elizabeth's Place Crowd Chants '¡Si, Se Puede!' After Passage of Immigration Bill DWTS Crowns a Winner Police Ram House to End Hostage Standoff Demi Moore a Rocks Bikini at Harry Morton's Family House Anthony Weiner: I'm running for New York City mayor Kate Middleton's Dress Flies Up VIRAL: Baby makes epic soccer goal The Hangover Baby All Grown Up
Parade
Magazine
Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.