US Consumer Debt Rises at Slower Pace on Drop in Card Balances.

The article focuses on the recent trends in US consumer borrowing, which increased in May at the slowest rate in three months, primarily due to a decline in credit card and revolving debt. Total credit outstanding rose by $5.1 billion, contrasting with a larger increase of $16.9 billion in April, while credit card debt decreased by $3.5 billion, marking the first drop since November. The report indicates that non-revolving debt, such as loans for vehicles and education, rose by $8.6 billion. This slowdown in borrowing aligns with a decrease in household spending and growing consumer anxiety about the economy and labor market, as well as rising credit card interest rates, which averaged 22.25% in May. Additionally, credit card delinquencies reached a five-year high, influenced by the resumption of student loan payments amid ongoing inflationary pressures. [Extracted from the article]