Consumer Borrowing Hits Record High In May
Source: Associated Press
Published: July 8, 2015
WASHINGTON U.S. consumer borrowing climbed to a record high in May, propelled by a surge in auto and student loans.
Consumer borrowing increased $16.1 billion following a gain of $21.4 billion in April, the Federal Reserve reported Wednesday. The April increase had been the strongest monthly increase since July 2014. The gains pushed total borrowing to a record $3.4 trillion.
In May, borrowing in the category that includes autos and student loans rose by $14.5 billion. Borrowing in the category that covers credit cards rose by $1.6 billion after an increase of $8.5 billion in April.
The overall increase put total credit up 6.5 percent over the past 12 months. The rise is led by a 7.8 percent jump in borrowing in the auto and student loan category and a more moderate 3.2 percent rise in borrowing in credit cards.
Read more: http://www.observer-reporter.com/article/20150708/NEWS08/150709542
EEO
(1,620 posts)We are completely on the wrong path.
7962
(11,841 posts)Some of my friends are guilty of it. They feel like they HAVE to appear as successful as some other friends who have done quite well, so they spend every dime they make to look like they're rich. 2 Tahoes in the driveway. 3K square ft home when the kids are grown and gone. And the car salesman are only too willing to help; now offering SIX yr financing. Ridiculous.
I've bought ONE new car in my life. I drive 'em till they are no longer dependable and I drive a LOT. My last car has 326K on it and still going. And these have all been US made cars too, and they last!
But I'm rambling......
brentspeak
(18,290 posts)A lot of this borrowing is due to purchases of essentials -- gas, bills, food.
Bad news all around.