19th Straight Month of Declining Credit Card Debt

Each month the Federal Reserve issues the G.19 Consumer Credit report, composed of statistical data for credit usage. Today, they released their latest report for the month of April. The report includes information for many types of loans – like vehicle and college – these are installment loans. Meanwhile the revolving loan category is made up almost completely of credit card debt.

For the 19th month in a row, the revolving loan category debt has gone down. Right now the total stands at $838 billion, compared to $975.7 billion in September 2008. But even though consumers are carrying less debt on their credit cards, the data claims installment loan debt is going up.

Do you view this has a good thing, since the banks are lending more? Or do you view this as a bad thing because installment loan debt is growing?

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hmm. I think it is a good thing because interest rates on credit cards are usually much higher. And from what I have seen and heard it is credit cards that spiral out of control quickest. Installment loans are fixed so I think they are easier to budget for and people generally more carefully consider the committment involved with purchases bought with an installment loan. This is just my humble opinion though.