Consumer Credit Card Debt Rises
Is it a good thing or a bad thing for the economy when America’s total credit card debt grows ? According to a recent article in the Wall Street Journal , more credit card spending is typically “a sign of a rebound in consumer spending after a sluggish winter,” and thus a good thing for the economy. But, can too much credit card debt become a problem? Will current spenders need to think about filing for consumer bankruptcy in the near future? Billions in Credit Card Debt When the Federal Reserve talks about the total outstanding consumer credit , they are referring to all debt outside of home loans or mortgages. Based on recent calculations, Americans’ total credit card debt rose by almost 8% in March, and economists “had expected consumer debt to rise $16 billion in April.” The number actually outpaced those economists’ expectations, however, as it jumped by “a seasonally adjusted $20.54 billion in April,” which reflects a 7.33% surge. While credit card debt ros...