Consumer Credit Slightly Down in August But Remains Strong
The Federal Reserve released data today showing that consumer credit use grew by more than 4% in August to the tune of $13.1 billion. This was more than one percentage point below the previous month’s data and more than two percentage points below average 2016 levels. Credit card loans grew significantly in August while student loans and car loans increased at more modest levels.
WalletHub, a credit monitoring service, projected last week that American credit card debt would top $1 trillion by the end of the 2017. Despite growing income levels across the country, a recent poll found that 4 in 5 Americans still live paycheck to paycheck. Another study by the Consumer Financial Protection Bureau concluded that nearly half of all Americans struggle with basic financial well-being, especially a lack of financial security.