Earlier in 2017, using the latest - and soon to be revised - Fed data, newspapers and financial media reported that US consumer credit card debt had risen above $1 trillion for the first time since the financial crisis.
Ironically, just a few months later the Fed revised its data series sharply lower, sending the revolving credit total back under this "psychological number." At least until recently, when the latest consumer credit update from the Fed disclosed that in October, consumer credit rose by $20.5 billion, more than the $17.5 billion expected, of which $12.2 billion was non-revolving, auto and student loans, and $8.3 billion was credit card debt. This was the biggest monthly increase in credit card debt since last November's (revised) $12.3 billion.
Total consumer credit rose by 6.5% Y/Y, rising to $3.802 trillion as of Oct 31. That number is more than double the rate of increase of US GDP or wage growth, making it clear just where America's "purchasing power" comes from.
Finally, this was also the single biggest monthly increase in consumer credit since November 2016.
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A couple of years ago I went to a local Bankruptcy Attorney and was going to file for relief of $65,000, he laughed and said to go out and max out my cards then come back after 90 days, it will be worth it.
ReplyDeleteSo I spent another $40,000 on stuff and vacations, he was right it was worth it. I now have two new credit cards again with a $10,000 limit on each. Bankruptcy did hurt my credit a little, but I lost none of my stuff!
And When It Comes Crashing Down ..I Have No Desire To Be Holding Suitcase After Suitcase Of Greenbacks !!!
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