Newsroom
June 27, 2014
Post-crisis drop in consumer card use reversing
June 30, 2014 – Credit card debt is on the rise again, reversing a trend that pushed consumers' use of revolving debt down more than 15 percent in the wake of the financial crisis, American Banker reported Friday.
Federal Reserve data for April, as shown in NAFCU's June 9 Macro Data Flash report, showed an increase of 12.3 percent in revolving consumer credit, seasonally adjusted. American Banker quoted several economists pointing to this and other metrics to show increased comfort with "borrowing with plastic" recently.
The paper said: "Household credit on bank credit cards grew by 2.1% in May, which was the highest growth rate since the height of the financial crisis, according to a new report by Moody's Analytics. And analysts at Nomura recently declared that U.S. consumers' propensity to carry credit card debt from month to month is at its highest level since October 2008."
The Nomura report stated: "We now believe we're at the early stages of a postcrisis inflection point in the level of spending that consumers are willing to finance on credit cards."
Other economists cited pent-up demand for large purchases that consumers have postponed during the economic recovery, but said many young people are still uneasy using credit cards. A Credit Suisse report said the "most dramatic" increase of consumers with no credit cards has been in the 18-29 age group, since 2005.
Federal Reserve data for April, as shown in NAFCU's June 9 Macro Data Flash report, showed an increase of 12.3 percent in revolving consumer credit, seasonally adjusted. American Banker quoted several economists pointing to this and other metrics to show increased comfort with "borrowing with plastic" recently.
The paper said: "Household credit on bank credit cards grew by 2.1% in May, which was the highest growth rate since the height of the financial crisis, according to a new report by Moody's Analytics. And analysts at Nomura recently declared that U.S. consumers' propensity to carry credit card debt from month to month is at its highest level since October 2008."
The Nomura report stated: "We now believe we're at the early stages of a postcrisis inflection point in the level of spending that consumers are willing to finance on credit cards."
Other economists cited pent-up demand for large purchases that consumers have postponed during the economic recovery, but said many young people are still uneasy using credit cards. A Credit Suisse report said the "most dramatic" increase of consumers with no credit cards has been in the 18-29 age group, since 2005.
Share This
Related Resources
Add to Calendar 2024-05-03 14:00:00 2024-05-03 14:00:00 Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing About the Webinar In January 2024, Pentegra conducted a survey of retirement plan sponsors and their perspectives on retirement plan management and fiduciary outsourcing. The survey measured how sponsors are using fiduciary outsourcing to help better manage their retirement plans. It also captured their perspectives on what outsourcing does to help them better position their plans and drive improved retirement plan outcomes. Key Takeaways: What is the full scope of your responsibilities as a plan sponsor? What is fiduciary outsourcing and how does it work? How does fiduciary outsourcing help reduce workloads and minimize risk? How can a credit union best position its plan to drive improved outcomes? Register Here Web NAFCU digital@nafcu.org America/New_York public
Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing
preferred partner
Pentegra
Webinar
Ensuring Safety and Soundness with AI
Management, Consumer Lending, FinTech
preferred partner
Upstart
Blog Post
Turning Lemons into Lemonade: Capitalizing in a Post-Banking Crisis Era
Strategy
preferred partner
Allied Solutions
Blog Post
Add to Calendar 2024-05-02 14:00:00 2024-05-02 14:00:00 Mastering Resilience in Incident Response Plans About the Webinar An Incident Response (IR) plan is crucial for guiding credit unions through major incidents efficiently and effectively. However, many IR plans lack resilience, making them less adaptable to the evolving threat landscape. Join us for our webinar Mastering Resilience in Incident Response Plans where DefenseStorm cyber experts Elizabeth Houser and James Bruhl will delve into the importance of resiliency within cybersecurity IR plans. Don’t miss out on the opportunity to learn how to: Ensure IR plan accessibility so that all team members with assigned roles are prepared for effective incident response. Conduct efficient and regular reviews to ensure roles and responsibilities are current, tools are relevant, and compliance requirements are met. Implement and utilize tabletops to regularly test the effectiveness of your IR plan. Enhance preparedness, efficiency, and confidence among responders. View On-Demand Web NAFCU digital@nafcu.org America/New_York public
Mastering Resilience in Incident Response Plans
preferred partner
DefenseStorm
Webinar
Get daily updates.
Subscribe to NAFCU today.