Consumer Credit Spikes Upward in June 2006

In August 11, 2006
2475 Views

Consumer credit jumped by $10.3 billion in June 2006, according to the latest figures released by the Federal Reserve. Of that amount, $6.65 billion was in the form of revolving (credit card) debt. With most analysts predicting an increase of just $4 billion in June, these figures were much higher than expected. In addition, the May numbers were revised upward from $4.4 billion to $5.88 billion. Total U.S. consumer debt, not including mortgages, now stands at $2.19 trillion.

There’s no way to know for sure what prompted the large upward spike in use of credit, but the twin culprits of high gas prices and high utility bills seem like a sure bet to me, at least for a significant portion of the increase. Consumer spending usually slows down during the summer months. It will interesting to see if that trend continues this year, or if consumers keep piling on debt at unexpected levels.

 

Leave A Comment

ZipDebt = Fast Relief

Debt settlement is just as much about managing risk as negotiating savings. The 36-48 month programs offered by most debt companies have high risk for collection lawsuits. It's far more effective to "fast track" debt settlement in 12-18 months.

ZipDebt = Affordable Help

Instead of paying fees as high as 20-30% of your TOTAL DEBT, it’s far more affordable to work with a professional consultant who only charges 15% of the SAVINGS achieved via the negotiations. This approach saves you money and creates a win-win scenario.

Contact Us