Credit Card Debt Grows for First Time in 27 Months
Consumers are feeling better about their personal finances and the economy in general.
Credit card balances grew in December for the first time since August 2008, an indication that consumers may be feeling better about their personal finances and the economy in general.
That’s according to the latest Federal Reserve Consumer Credit Report which showed that revolving credit (primarily credit card debt) increased in December at an annual rate of 3.5%, the first increase in 27 months.
Total credit card debt outstanding on Dec. 31 was a seasonally adjusted $800.5 billion, an increase of $2.3 billion from November.
Credit card debt has declined 18% since August 2008 when it was $974 billion.
The average credit card rate increased from 12.04% in August 2008 to 14.08% today.
View the latest Federal Reserve Consumer Credit statistics here.