As the Washington Post says, “America is starting to re-leverage itself.” Every form of consumer credit other than mortgages is rising at extremely high rates, and we are not just talking about student loans. Everything, including credit cards and auto loans, is increasing.
According to the Federal Reserve’s monthly report, consumer debt rose $19.6 billion in May 2013, which reflects an 8.3% annual rate of increase. At this rate, Americans will add an extra $235 billion in consumer credit in a year, amounting to an increase of $2,000 per household. This is a lot of debt to add in one year.
Not only that, American consumer credit currently totals $2.84 trillion. This is a new record in non-inflation adjusted terms, and debt as a percentage of GDP is back up to 2006 levels.
Read the report from the Federal Reserve here: http://federalreserve.gov/releases/g19/current/default.htm
If you are struggling to make payments on your credit cards, auto loans, or private student loans, call a qualified debt settlement attorney who can help you shed excess consumer credit and live a debt-free life.
Kevin Fallon McCarthy
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