Reply #22: Gee, I suppose we can look forward to another record in consumer [View All]

credit for July too, huh?


http://www.bloomberg.com/apps/news?pid=20601103&sid=a1NorWYIh4Fk&refer=us
U.S. Consumer Credit Unexpectedly Accelerated in June (Update2)
Aug. 7 (Bloomberg) -- Borrowing by U.S. consumers unexpectedly accelerated in June as credit card debt jumped, a Federal Reserve report showed today.

Consumer credit, or non-mortgage loans to individuals, rose $10.3 billion to $2.19 trillion following a revised $5.89 billion increase in May. The two-month gain was the biggest since September-October 2004.

Americans are making greater use of their credit cards to finance purchases because rising interest rates and a cooling housing market make it harder for them to take out home-equity loans. Higher prices at filling stations are also prompting consumers to take on more debt, economists said.

``The jump in consumer credit coming at a time when consumers are hard hit by soaring gasoline costs could indicate some financial woes on the part of borrowers,'' said Chris Rupkey, an economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. ``It looks as if consumers are relying more on credit cards now that other avenues of credit such as mortgage refinancing have been shut off to them.''