The collective credit bill of consumers in the United States continues to rise at a rapid pace. A report from the Federal Reserve shows that total outstanding consumer credit debt increased almost $19 billion over the course of March and April 2012.
According to the report, American consumers are taking on more debt to pay for big-ticket items like college, cars and summer vacations.
Despite this increase, consumers are paying down their credit card debt. Revolving debt outstanding, which includes mostly credit cards, fell $3.4 billion in April of 2012. At the same time, non-revolving debt, which includes financing for school and cars, increased $10 billion, its largest gain in three months. This figure does not include home mortgage loans.
While the overall increase may sound like a lot, it was actually smaller than what Fed expected, indicating that consumers just aren't as willing to frivolously spend as analysts thought they would be.
This news follows a report a month ago that revealed mostly negative economic indicators, including a bleak employment outlook from the Labor Department and a weakening consumer confidence index from the Conference Board.