U.S. Consumer Credit Rises
NEW YORK (
) -- Outstanding U.S. consumer credit borrowing figures jumped in October, according to a
Federal Reserve
report.
In the report released Tuesday, the Fed said that October consumer credit rose at a seasonally adjusted annualized rate of 1.7%, or $3.4 billion, to $2.4 trillion.
At the same time, the report said that revolving credit in October fell $5.6 billion, or 8.4%, to $800.5 billion. The last time credit-card debt rose was August 2008, according to the report.
Record high unemployment has put a crimp in the earnings at retail banks and credit card lenders including
Bank of America
(BAC) - Get Report
,
JPMorgan Chase
(JPM) - Get Report
,
Citigroup
(C) - Get Report
as well as
Capital One
(COF) - Get Report
,
American Express
(AXP) - Get Report
and others to feel the pain as consumers were unable to pay their bills.
Consumer Debt Dips in Third Quarter
According to a separate report by TransUnion, roughly 8 million consumers stopped actively using credit cards over the past year as credit card, as delinquencies continued to decline, the
Wall Street Journal
said.
The report said non-revolving credit rose 6.8%, or $9 billion, to $1.6 trillion.
The Fed report excludes mortgage loans and other real-estate secured loans.
-- Written by Laurie Kulikowski in New York.
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