Have you been spending more this year than last? Total consumer credit rose by 10%, or $35 billion, in May, according to the Federal Reserve. What a big increase!
“Economists had been expecting an increase of $18 billion”, according to a Market Watch Article. When the economy is good people tend to spend more money, but on the other hand, when the the economy is good and stimulated, prices too tend to rise, such as recent used car prices we have been watching sky rocket.
“Last year the use of credit fell for the first time since the last recession in 2009. Revolving credit, like credit cards, increased by 11.4%. Non-revolving credit, typically auto and student loans, also rose 9.5%, according to an Experian Credit Card Report.
With this data at hand, we want to emphasize the importance of protecting your credit score, maximizing utilizing your points, spending responsibility, and taking advantage of potential zero percent interest. If you find yourself financially heading in the wrong direction, consult with a professional to attempt to alleviate the situation. We’d like to hear how your spending and borrowing habits have changed over the last few months, as people are assimilating into post-covid life. We will continue to track these numbers and how they will affect you and your situation. If you have any questions for us or want to share what you are seeing, send us an email at info@shermanwealth.com.
