Consumers Charge up Credit Cards in May

U.S. consumers racked up debt at a quick rate in May, using their credit cards at the fastest pace in six months, according to the Federal Reserve’s monthly Consumer Credit report released late yesterday.

Consumers in May expanded outstanding credit by $12.9 billion, for a 6.3 percent annualized rate, according to the Fed. The agency does not include mortgages or home equity loans in its report.

Leading the way was credit card spending, which rose $7.25 billion, or 9.8 percent, the largest gain since the holiday season of 2006.

The Fed made some revisions in previous months’ numbers, reducing the increase it reported for April’s overall spending to $2.3 billion from $2.6 billion. March’s overall credit increase was $13.5 billion after a $2.97 billion increase in February.

Credit card spending for April was revised upward to a 0.2 percent increase from the previously reported 0.5 percent decrease.

Other loan types also saw significant gains in May.  Non-revolving debt, like auto loans, rose at a 4.4 percent pace in the month after a 1.7 percent gain in April.