Consumers Not Using Credit Cards, Though Consumer Spending is Up

According to recent figures released by the Federal Reserve, consumers are spending more. Yay! Recovery! However, they’re not using credit cards to do it.

In February, consumer credit card debt totaled $799 billion, a 15 percent decrease from December 2007.

We’re still taking baby steps out of the Recent Troubles, and these updated numbers point to some residual fear and anxiety about the economy and the dangers of overextending via debt.

While credit card debt may be on something of a decline, student loan debt (the focus of our upcoming Big Issue, sponsored by F.H. Cann) is still on the rise and shows no sign of stopping. Where it was at $117 billion in 2011, 2012 is seeing that number around the $1 trillion mark. With a T. As in “Too Many Zeroes.”

More than 80 percent of individuals ages 18 to 34 who took out student loans still carry a balance, and more than 30 percent of those owe more than $20,000.

The Fed said in April that it “expects economic growth to remain moderate over coming quarters and then pick up gradually.”