Credit Card Debt Continues to Climb

February 12, 2012, Written By Lynn Oldshue

The latest report from the Federal Reserve shows that consumers used their credit cards quite extensively to fund their holiday shopping.

Revolving credit, which is made up primarily of credit card debt, increased at an annual rate of 4.1 percent in December. It rose nearly $3 billion to $801.0 billion.

This follows a jump of $5.5 billion in November which was an annual rate increase of 8.4 percent.

December was the fourth straight month of increases in revolving credit.

This could be a positive sign that consumers are more confident in the economy. But on the other hand, it could mean that people are struggling and have to rely on using their credit card to make ends meet.
Consumers are going into 2012 with higher credit card debt, but the same wages. If consumers have a hard time paying this down, then we might see delinquencies and defaults start to increase by spring.

The latest G19 report:

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The information contained within this article was accurate as of February 12, 2012. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.

About Lynn Oldshue

Lynn Oldshue has written personal finance stories for for twelve years. She majored in public relations at Mississippi State University.
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