National Association of Federally-Insured Credit Unions (NAFCU) officials are reporting credit card debt has risen to a record high.
The NAFCU said total consumer credit rose 3.9 percent in June, with both revolving and non-revolving credit losing some momentum.
“A recent Federal Reserve survey found that banks are tightening lending standards on credit card and auto loans,” Curt Long, NAFCU chief economist and vice president of research, said. “Nevertheless, the outlook for consumer lending remains positive in light of a strong labor market and positive consumer confidence.”
Non-revolving credit, which is primarily comprised of motor vehicle and education loans, rose 3.5 percent in June while revolving credit increased 4.9 percent.
Officials said the survey referenced total consumer credit for credit unions rose 0.7 percent in June from the previous month, compared with a 0.4 percent increase for banks and a 0.7 percent increase for financial companies.
Credit unions’ share of the total consumer credit market remained at 10.6 percent in June, while banks had 39.7 percent and financial companies held 17.4 percent of the market.
Total consumer credit at credit unions rose 4.5 percent in the second quarter, per the survey, but rose just 1.8 percent and 0.3 percent at banks and financial companies.