Released: July 10, 2007

Big jump in credit card debt

Source: Associated Press [New York Times] (Free Registration)

The Federal Reserve reported yesterday that consumer credit rose at an annual rate of 6.4 percent in May, the biggest jump in credit card debt in six months.

The increase was far above April’s 1.1 percent gain, and about double what analysts had been expecting.

The category that includes credit cards surged, rising at a rate of 9.8 percent in May after a tiny increase of 0.2 percent in April. The jump in credit card debt was the largest since a 14.5 percent rate of increase in November.

The category of consumer credit that includes auto loans was also up in May, rising at a 4.4 percent rate after a 1.7 percent gain in April.

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