Total consumer credit balances increased in August, after increasing at a seasonally adjusted annual rate of 2.1% in August. percentage of It was 6.3% in July and 0.8% in June.
Total consumer credit outstanding was $5.098 trillion at the end of August. federal reserve system This was stated in the monthly magazine on Monday (October 7th). report above Consumer credit balance.
During the month, revolving credit decreased by 1.2% annually, while non-revolving credit increased by 3.3%, according to the report.
The $8.9 billion growth in total consumer credit was below the consensus estimate of $11.8 billion, according to Seeking Alpha. reported Monday.
Economists surveyed by Bloomberg had expected a $12 billion increase, Bloomberg said. reported Monday.
The slower the better growth rate That's due in part to the largest decline in credit card balances since March 2021, according to the report, as consumers look to reduce their balances due to credit card interest rates that reached record highs in August. It is said to suggest that.
The US Federal Reserve (Fed) cut its benchmark interest rate by 0.5 percentage point in September, but it will take some time for that to translate into lower financing costs for consumers, the report said.
It was reported on Monday that credit card Card issuers are raising interest rates and adding new fees on cards to make up for potential lost revenue due to recent caps. Fee.
A Consumer Financial Protection Bureau (CFPB) rule capping late fees at $8 is still pending in court, but card issuers and banks are trying to offset the potential losses it could cause. .
Consumers struggle with rising prices credit card Low-income consumers are finding it harder to pay their bills, with 9.1% of credit card balances falling into arrears last year, the highest rate in more than a decade.
43% of consumers rotate their debtaccording to PYMNTS Intelligence. lending club Collaboration, “New Reality Check: Payroll Report: Detailed Credit Card Usage”
The percentage of consumers revolving their debt rises to 65% for those who live paycheck to paycheck and have problems paying their bills, compared to 51% for those who live paycheck to paycheck and have no problems paying their bills. rises to problem The report found that he was paying his bills.
