_{ECONOMIC INSIGHTS}

Americans Accumulate $19 Billion in Credit Card Debt in a Single Month

In a single month, Americans have accumulated $19 billion in credit card debt, highlighting a growing dependency on borrowing, which equates to approximately $56 per person in a population of 340 million. This increase in debt coincides with unexpectedly high retail sales, suggesting that households might be financing their spending through credit, as indicated by Wells Fargo. Notably, total consumer credit has surpassed $5 trillion for the first time, with credit card debt reaching unprecedented levels. Michele Raneri from TransUnion notes that consumers are using credit to manage the inflated costs of goods and services, yet there's no significant decrease in borrowing rates, despite expectations that lower Federal Reserve rates might encourage debt refinancing. Read More.

_{FINANCIAL FOCUS}

Federal Survey Reveals Increase in Loan Demand at US Banks in 2024

U.S. banks expect loan demand to rise this year, coinciding with a forecasted drop in interest rates, though they plan to impose stricter credit standards for certain loan types, a Federal Reserve survey indicates. The survey points out that deteriorating collateral values and a gloomier economic outlook are driving banks to toughen the criteria for commercial real estate, credit card, and auto loans, expecting a decline in loan quality across most categories. Read Now.