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Federal Reserve data indicates rise in consumer credit

Posted on Wednesday, August 7, 2013 at 4:05:08 PM

Many American's have their finances on the right track once more, and the well-being of the economy has received another boost from consumers -  credit levels are increasing and more people are easily paying off debt.

Recent Federal Reserve data indicates that consumer credit has risen 6 percent at a seasonally adjusted annual rate for June. Revolving credit grew at an annual rate of 2 percent, while nonrevolving credit increased 7.5 percent. 

Thanks in part to affordable auto financing, more people are able to use loans to purchase new vehicles, according to Bloomberg.

"It was the best thing for the buck," Gabriela Magallanes, who just bought a new Hyundai Elantra, told the news source. "I definitely could not have gotten a better rate," and "felt very secure I could make my payments."

Individual household finances are in good condition, explained Joseph Carson, director of global economic research at AllianceBernstein LP, to Bloomberg. Consumer credit can help expansion, he added, and it is an improvement from previous months.

Thanks to consumer credit levels, more people will be motivated to use auto financing to purchase cars, and spend across all segments of the U.S. economy.