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Consumers Finally Crack: Shocking Drop In June Credit Card Debt Marks End Of Spending Binge
Two months ago when both revolving credit (i.e., credit card debt) and interest charged on credit cards hit a record high, we said that this trajectory was unsustainable and it was only a matter of time before the debt-funded US consumer hit a brick wall. One month later, the first brick wall was hit, when in May US consumer credit grew by a paltry $7.24BN, down more than 50% from the downward revised $20.3BN in April; and while revolving credit posted a healthy increase of $8.5 billion, the shocker was in the non-revolving segment, also known as student and auto loans, and which unexpectedly dropped by $1.3 billion, ... (full story)