Yesterday the Federal Reserve released the latest data on consumer borrowing. It’s been interesting watching all the media reports about what it means. Some say the big percentage rise in revolving debt is an indication about consumer confidence, and it might be. But it’s not unusual to see a summer spike in charging as vacations ensue.
What is more concerning from my point of view is the continued increase in nonrevolving debt, which include student loan borrowing. A increase in this category continues to put pressure on consumers and limit their ability to use revolving credit to fuel the economy.
In May, 2013 revolving debt grew $6.6 billion while nonrevolving debt grew $13 billion.
Continued increase in nonrevolving debt creates more opportunity for bankruptcy attorneys but less for unsecured debt relief companies.