Credit Card Use Up in October
Published December 10th, 2007 in Credit News.
The Federal Reserve reported Friday that consumer credit increased at an annual rate of 2.3 percent in October, up from the 1.6 percent growth rate in September.
The use of revolving credit, which includes credit card debt, increased at a rate of 8.3 percent in October after a six percent gain in September and a 10.6 percent increase in August.
Credit card use has been on the rise over the last several months as falling home prices and tighter lending restrictions have made it more difficult for homeowners to refinance their existing home loans or open home equity lines of credit.
As a result, many have turned to credit cards to pay their bills, and in some unfortunate cases, their mortgages.
Overall consumer credit rose by $4.7 billion to a record $2.49 trillion in October, but still below the $6 billion advance that many economists had expected.
