Credit Card Debt Surges in May After Falling in April

Consumers in the United States got back to spending on their credit cards in May after credit card debt contracted in April, the Federal Reserve said late Tuesday.

In its monthly consumer credit statistical release – commonly called G.19 by economists – the Fed said that U.S. consumers added $5.7 billion to outstanding credit card, or revolving, debt in May, or at an annual rate of 7.1 percent. Total credit card debt outstanding in the U.S. at the end of May was $961.8 billion.

The Fed also revised the numbers from April to reflect credit card debt contraction for the first time since May 2005; credit card debt fell by about $400 million in April, or at a -0.5 percent annual rate according to the revision. The Fed had initially reported a $300 million increase in card debt for April, a 0.4 percent growth rate ("Consumers Put Away Credit Cards in April, But Still Rack Up Debt," June 9).

Total consumer credit expansion in May was pegged at $7.8 billion, or at an annual rate of 3.6 percent. Total consumer credit outstanding in the U.S. is now $2.57 trillion.

Non-revolving debt, such as auto or personal loans, increased by $2.1 billion in May, or at a 1.6 percent annual rate. In April, non-revolving debt increased at a revised 6.2 percent rate. The Fed initially reported a 6.5 percent annual growth rate for non-revolving debt in April.

The Fed’s G.19 report does not cover debt backed by real estate, such as mortgages or home equity loans.