Consumer Credit

Consumers boosted their borrowing in May, mostly reflecting heavy credit card use. The Federal Reserve reported that consumer credit increased at an annual rate of 3.6% in May, roughly the same pace as logged in the prior month. The pickup pushed total consumer debt up by $7.8 billion to $2.57 trillion. That was a bit more brisk than the $7 billion over-the-month increase economists had been expecting.

WASHINGTON - After nine-straight months of improvement, consumers slipped in October in keeping up with their bills. A closely followed composite index of defaults on mortgages, credit cards and auto loans increased last month after hitting a post-recession low in September. Driven by higher defaults on first mortgages, the consumer credit default index released Tuesday by S&P Dow Jones Indices and credit reporting company Experian increased to a 1.55% rate in October from 1.46% the previous month.

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WASHINGTON -- Americans continue to do a better job paying off their debts, with a leading index of defaults on mortgages, credit cards and auto loans dropping in July for the seventh straight month. Four of the five types of loans tracked by the S&P Dow Jones Indices and credit reporting company Experian fell in July to their lowest level since the end of the Great Recession in 2009, the firms reported Tuesday. Only second mortgages saw a slight increase from June. "Looking at the rate of new defaults in mortgages or auto loans, the consumers' credit position has recovered from the financial crisis," said David M. Blitzer, chair of the Index Committee for S&P Dow Jones Indices.

Consumers have boosted their borrowing at the fastest pace in three months, turning increasingly to their credit cards to replace home equity loans as a source of ready cash. The Federal Reserve reported that consumer credit rose at an annual rate of 5.9% in August, the biggest increase since May, when it jumped 7.9%.

For better and for worse, consumers are starting to take on more debt — much more, surprisingly. The Federal Reserve reported Tuesday that consumer credit outstanding surged in December at a 9.3% annual rate, thanks mostly to strong car sales and growing demand for student loans. The seasonally adjusted dollar gain from November was $19.3 billion. That was almost triple what analysts were predicting, and December marked the second straight month of 9%-plus growth. On the positive side, the increase reflects the pickup in consumer confidence and spending as the labor market has perked up since last summer.

WASHINGTON -- Americans continue to do a better job paying off their debts, with a leading index of defaults on mortgages, credit cards and auto loans dropping in July for the seventh straight month. Four of the five types of loans tracked by the S&P Dow Jones Indices and credit reporting company Experian fell in July to their lowest level since the end of the Great Recession in 2009, the firms reported Tuesday. Only second mortgages saw a slight increase from June. "Looking at the rate of new defaults in mortgages or auto loans, the consumers' credit position has recovered from the financial crisis," said David M. Blitzer, chair of the Index Committee for S&P Dow Jones Indices.

Consumer credit in the U.S. declined in February more than anticipated, indicating Americans are reluctant to take on more debt without further improvement in the labor market. Borrowing fell $11.5 billion, the most in three months, after a revised $10.6 billion January gain that was twice as much as initially estimated, the Federal Reserve said today in Washington. The decline in the February measure of credit card debt and non-revolving loans was worse than the lowest estimate in a Bloomberg News survey of 34 economists.

Consumer borrowing posted the smallest rise in six months in April as Americans paid off some of their credit card debt. The Federal Reserve reported that consumer borrowing rose at an annual rate of just 1.3% in April, down from a 7% rise in March. It was the slowest growth in borrowing since a 0.1% rate of increase in October. The slowdown was led by a 0.5% rate of decline in the category of debt that includes credit cards.

Large credit reporting companies, which are playing an increasingly important role in the financial lives of Americans, will get new federal oversight from the nation's consumer watchdog. The Consumer Financial Protection Bureau said it would begin this fall to supervise the 30 largest credit reporting companies, which account for 94% of the market's annual receipts. Among the firms are the big three: Experian Information Solutions Inc.,Equifax Inc.and TransUnion. Combined, they issue more than 3 billion consumer credit reports each year and have files on more than 200 million Americans.

Stocks edged lower on Wall Street after investors heard no hints of further Federal Reserve actions in Chairman Ben Bernanke's testimony before Congress. Europe's debt crisis continued to rattle financial markets. The Financial Times reported Spain could request a bank bailout Saturday from the European Union. The Dow Jones industrial average was down 44 points, or 0.4%, to 12,417 shortly after the opening bell. The broader Standard & Poor's 500 index was down 5 points, or 0.3%, to 1,311.

The amount of money U.S. consumers owe continued to rise in April as Americans took on more debt to pay for big-ticket items such as college and cars. Total consumer credit outstanding rose $6.5 billion, an annualized 3.1%, according to a report from the Federal Reserve. That followed an increase of $12.4 billion in March. The increase occurred even as consumers paid down credit card debt. Revolving debt outstanding, which includes mostly credit cards, fell $3.4 billion in April.

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Americans are buying cars at a faster rate than they have in four years as rising gas prices and easier-to-get financing are driving more buyers to dealership showrooms. Bolstered by a surge in sales of fuel-efficient vehicles, automakers sold cars at an annualized sales rate of 15.1 million in February, which coincidently marked the industry's best performance since the February of the last leap year in 2008. They are selling to buyers such as recent college graduate Lindsey Roberts, an Atlanta resident who went shopping earlier this month to replace her 12-year-old Chrysler that got less than 20 miles per gallon.

For better and for worse, consumers are starting to take on more debt — much more, surprisingly. The Federal Reserve reported Tuesday that consumer credit outstanding surged in December at a 9.3% annual rate, thanks mostly to strong car sales and growing demand for student loans. The seasonally adjusted dollar gain from November was $19.3 billion. That was almost triple what analysts were predicting, and December marked the second straight month of 9%-plus growth. On the positive side, the increase reflects the pickup in consumer confidence and spending as the labor market has perked up since last summer.

Consumer borrowing increased at an annual rate of 10% in November, the largest jump in a decade, as Americans were more comfortable using their credit cards early in the holiday season, the Federal Reserve reported. Overall consumer credit surged $20.4 billion in November from the previous month to $2.48 trillion, the Fed said Monday. The percentage increase was the largest since an 18.4% jump in November 2001. The figures include most short- and medium-term credit, such as increased auto and student financing, but not mortgages or home-equity loans.

Consumer borrowing increased at an annual rate of 10% in November, the largest jump in a decade, as Americans became more comfortable using their credit cards heading into the holiday season, as well as taking out auto and student loans, the Federal Reserve reported Monday. Overall consumer credit surged $20.4 billion in November from the previous month to $2.48 trillion. The percentage increase as the largest since an 18.4% jump in November 2001. The figures include most short- and medium-term credit, but not mortgages or home-equity loans.