According to a recent report from the Federal Reserve, revolving credit rose in March for just the second time in 31 months.  After leveling off mid-year in 2010, revolving debt once again ticked up in December 2010.

Difficult to tell why consumers are once again adding to their revolving debt balances, but one possibility is that consumers are starting to feel much better about the economy in general.

This could be a very encouraging sign of economic recovery, for small businesses in particular, which might lead to even further job growth.  So, while adding to overall debt balances might be viewed as unhealthy,  many economists view this as a very positive growth signal for the US economy.

Another possibility is that inflation and rising gas prices might have forced consumers into adding to their balances.  Hard to tell, but rising card balances could mark a significant turning point for US consumers.

Excerpt Source:  Credit Card Balances Rise: Are Consumers Stretched?

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Tags: March, March 2011

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