Consumer credit card spending in the US in April has surged by $8.8bn, according to data published by the US Federal Reserve.
As per the report, the total amount of consumer credit had grown $26.85bn to a total of $3.18trn, higher than large increase from the $19.5bn recorded in March, savingadvice.com reported quoting the report.
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The statics by the central bank of the US highlights that consumer debt is now increasing at a rate of 10.2% per year, which is the fastest growth in consumer debt since July 2011.
The Federal Reserve reported revolving credit, the type which measures the use of credit cards by consumers, surged by nearly $9bn ($8.8 billion), which points out that credit card debt is now running at a 12.3% annual rate gain.
The study said that the consumers are willing to borrow more on credit cards, which indicates that many still did not understand the high cost of making purchases with borrowed money.
Credit card debt also makes it difficult for most people to reach their long-term financial goals as they ended up paying higher interest on credit card debt, which ultimately breaks the financial planning.
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By GlobalData
