Credit card balances grew faster than installment loans
The Federal Reserve reported that consumer credit increased at a 4.8% annualized rate in April.
Credit cards are considered revolving credit because balances can change from month to month. Revolving credit increased at a 10.4% annualized rate during the month.
Installment loans, such as auto loans, student loans, and personal loans, are repaid through scheduled monthly payments over a set period. Installment credit increased at a 2.9% annualized rate.
Like many economic reports, this release tells us what happened but not necessarily why. The report measures borrowing activity and does not indicate the reasons consumers may have chosen to borrow more during the month.
Want More Information?
Readers interested in the complete report can review the following resources:
• Federal Reserve Consumer Credit (G.19) Report
• Board of Governors of the Federal Reserve System
As summer gets underway, I hope everyone has the opportunity to spend time with family and friends and enjoy the longer days ahead.
Willie and I appreciate every reader.