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Credit Card Applications » News » Other » US Consumer Credit Falls 1.3 Billion Dollars in June

US Consumer Credit Falls 1.3 Billion Dollars in June

August 22, 2010
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A slightly volatile labor market discouraging the trend of borrowing was at evidence as consumer credit declined for 5th straight month. According to the Federal Reserve the credit fell further by 1.3 billion dollars at the back of the 5.3 billion dollars revised drop in the previous month.

According to a Bloomberg news survey`s median forecast, the measure of non revolving loans and credit card debt was projected by Economists to be 5.3 billion for the month of June. As Americans are trying to rebuild their savings, there would be some restraint in the spending even as credit card debt in June has dropped to its lowest levels since October 2005.

According to Joshua Shapiro, who is MFR Inc.`s chief US economist in New York, there is some tough sledding ahead for the consumers. According to him there isn`t much job growth without which it would be very difficult to generate an income growth to increase the consumer spending as well. According to projections from the Bloomberg`s survey of 36 economists in June, the decline in consumer credit has varied between 2 billion dollars to 11 billion dollars on the back of 9.1 billion dollar consumer credit decrease earlier.

Many stocks suffered from losses after the Standard and Poor`s 500 Index dropped 0.6 percent to touch 1118.7 in New York. There was rise in the 10 year Treasury bill leading to a decline in the yield from 2.9 percent to 2.82 percent. July witnessed a private employment gain of 71,000 following up on the 31,000 gain in the month of June. These numbers according to the Labor Department Figures were smaller than the expectations. Economists had estimated a 90,000 gain but the number seemed to have fallen way below that. As the population count had wound down, there has been a drop in the number of federal census workers and the number touched 131,000 including decline in payrolls from government jobs.

As the magnitude of the labor force diminished the unemployment rate was held at around 9.5% during the month of July. Fed report has also thrown some light on revolving debt including credit cards that has declined by 4.5 billion dollars in the month of June. The current mark has touched 826.5 billion dollars, the lowest level since 2005. Meanwhile the non revolving debt including mobile homes and cars rose by 3.1 billion dollars for the current month.

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  • Larry
    With the Virgin / Barclaycard signature offer, there seems to be some consumer deception or maybe even outright fraud goin on.   I decided to jump on this offer..  read all the info on it..  was approved for their platinum card, paid the fee, then was only awarded 10,000 points instead of the advertised 20,000.   When i inquired about the less than advertised bonus points, Barclaycard claims only Signiture Visa cardmembers get the 20,000..  as a platinum cardholder, you don't qualify for that level of bonus, so you get 10k instead.   Well, in their current ongoing promotions, it states plain as day that....    Applicants approved for the Visa Signature or Platinum Card with $49 annual fee will receive 20,000 Bonus Points awarded to your Virgin America Rewards Account at the close of the first billing statement in which you make your first purchase or balance transfer (that is not returned or rescinded) and have paid the Annual Fee on the account (and such fee is not rescinded). They don't mention anything about a separate program for platinum cardholders..  However, trying to get someone to resolve this issue with either Virgin or Barclaycard seems to be rather impossible.. Seems to me they're simply drawing people in with the fraudulent offer, then simply saying, oh, we're sorry you don't qualify..  but thanks for signing up for our garbage credit card with insane fees..   
  • CreditLandCom
    Thank you for sharing your experience with us. We have reviewed this offer and you are correct, nowhere it is mentioned that 20,000 Bonus can become a 10,000 Bonus all of a sudden... We will mention this in our review of this card so others can make an informed decision. Another way to get Virgin miles is to get an American Express charge card: The Business Gold Rewards Card® now offers 50,000 Miles, though you do have to spend $5,000 in the first three months of card membership to get it. It also has $0 introductory annual fee for the first year, then $175. http://www.credit-land.com/details/the-business-gold-rewards-card-from-american-express-open.php Premier Rewards Gold Card now offers 25,000 Miles, though you do have to spend $2,000 during your first three months of Card membership. It also has annual fee of $0 for the first year, then $175. http://www.credit-land.com/details/american-express-premier-rewards-gold-card.php While we do not know If any of these offers make sense to you, we are at least sure that you will get advertised bonus in full if you decide to get them... Conversion rates for Virgin America are: 100 Elevate Points = 200 Membership Rewards® Points All the best.
  • Deborah Ellsworth
     would very much like to start a new credit history  by making payments on time I would tohave a credit card that is NOT PREPAYID! I don't need a card with a high limit just something to start a new credit history. Thank You Deborah Ellsworth
  • Deborah Ellsworth
    I would very much like to start a new credit line to get back on track. I DO NOT WANT A PREPAID CARD!! This new credit card if I am approved does not have to hace a high limit just something for me to start over again and prove myself ThankYou. D Ellsworth
  • Miss Edna
    there is a huge problem with the RFIP chip: it is easily compromised. There are already 'readers' in the form of what looks like a cellphone in a case, that scans all the info in the chip by merely walking near a person -- this 'reader' penetrates leather, cloth, spandex, etc. The only thing it will NOT penetrate is METAL. Perhaps one has seen commercials touting metal credit card cases. Here is my hint for a free fix: cut a piece of aluminum foil or use the foil that is used to keep foods fresh, like coffee. Cut it so that when folded once, it forms a sleeve for your credit card. place the credit card in the sleeve, then place the sleeve in your wallet.
  • Robin Parks
    I am looking to apply for the AARP Visa signature card from Chase that offers $100 after spend $500 in first 3 months, no annual fee and 0% interest first year; I don't want to mail in offer because of having to write in Social security #. Can you direct me to the proper on-line site?
  • CreditLandCom
    The Chase bank cards are not currently available at Credit-Land.com, but you can consider applying for the Citi® Dividend Platinum Select® Visa® Card - $100 Cash Back. The cards has similar terms and cash back program.
  • Becky
    This is Becky Now what do I do just waqit for acard to come to me?
  • CreditLandCom
    Once you have applied, you should receive a letter within 10 business days letting you know if you were approved and when your card will arrive. If you did not receive any letter or notification from the issuer, you should contact them directly. Also, you should contact the issuer if you’ve been waiting for your credit card longer than 30 days. Since we are not a bank and don’t issue credit cards, we cannot give you any information about your application or credit card.
  • SavingStar
    Thank you for posting about SavingStar. Just to clarify one sentence in your article, we have over 5 million members (not 500). Thanks, Josh
  • CreditLandCom
    Sorry for the misprint. We’ve corrected the sentence. Thank you for noticing that.
  • Eric
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