Credit cards are loosing their popularity

Having studied all the figures, the Federal Reserve has announced that in April consumer borrowing grew at an annual rate of 4.2% against 6.2% in the previous month. Though it is necessary to add that those 6.2% came second after 8.2% growth rate registered in November 2007.

This month borrowing, which also includes credit cards, have increased by only at 0.4% of an annual rate, the lower rate was registered only in May 2005 when credit card borrowing had dropped at a 1.8% rate.

Despite these figures there are some other numbers that are not so “oppressive”. Therefore, while we face the slowdown in borrowing on credit cards and other revolving debt, the market of auto loans and other types of non-revolving credit has grown by 6.5% at an annual rate, which is higher than it was in March - 5.5%.

In general, consumer borrowing has reached the annual level of $2.56 trillion against the existed $8.95 billion.