There is great news in the consumer credit world; it has nearly made it all the way back to pre-recession levels. Driven by increasing vehicle sales and school tuitions, consumer credit rose by $17.8 billion in the first month of this year to reach $2.5 trillion.
Jumping by $20.7 billion, the student and auto loan category experienced its largest increase since last November. However, overall, economists have mixed thoughts about the improving consumer credit numbers. On the one hand, they are an indication that the economy is strengthening, while conversely it is never good to see people borrowing at the same time that wages are still deflated. No word yet as to what percentage of these are auto loans for good credit as opposed to car loans for bad credit. We’ll keep you posted!