A new government report suggests that consumers may be more willing to use their credit cards after a period of hesitation to incur credit due to financial pressures to keep balances low.
The Federal Reserve Bank of New York’s household debt study for April, May and June marked the second straight quarterly increase as credit card limits increased by $60 billion, or about two percent, during those months, GoErie.com reports.
According to the agency, the study suggests a modest increase in the willingness of consumers to borrow and of banks to lend.
The number of credit card accounts opened during this period jumped by 10 million to 389 million, which represents a 2.6 percent increase, Forbes.com reports.
Delinquency rates on credit cards are improving as well, with delinquent balances remaining 15 percent below levels from last year.
Overall, consumer debt hardly changed from the end of the first quarter as balances on mortgages fell by 0.2 percent and home equity loans fell by three percent, respectively. New foreclosure notices declined 22.8 percent from the first quarter.
Researcher Andrew Haughwout said in a statement that the statistics provided "more evidence that the pace of consumer deleveraging that began in late 2008 has slowed," GoErie.com reports.