Credit-card debt up for first time since Aug. 2008

Consumers are feeling more comfortable using their credit and charge cards, according to the latest government data released Monday and that may be a good news for the economy.

The Federal Reserve reported that credit-card debt increased in December for the first time since August 2008. Credit-card debt rose a seasonally adjusted $2.3 billion or a 3.5% annualized rate in December.

Credit and charge cards fell out of favor during the recession because of the high interest rates.

“We don’t think households have changed their mind about how much debt they are willing to carry, but we do believe that they are getting more comfortable using credit cards, which is a good sign for the overall economy,” said Ellen Zentner, senior U.S. macro economist at the Bank of Tokyo-Mitsubishi.

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- Posted: 2011-02-07 22:38:45

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