Economic Recovery Underscored by Rise in U.S. Consumers’ Credit Card Debt, Study Suggests

 

Businesses and consumers should strive to keep debt in check by budgeting wisely, advises Victory State Bank, Staten Island’s only community-based commercial bank.

Concurrently, the bank acknowledges that an overall uptick in credit card debt among Americans may be signaling a strengthening economy. According to data from the latest National Consumer Credit Trends report released yesterday (July 30) by Equifax, American consumers continue to show signs they are recovering from the Great Recession by steadily increasing their credit card debt.

Total credit card debt rose to $634 billion at the end of the second quarter, a 5 percent jump compared to $604 billion a year ago.

The Equifax data also revealed the rate of growth in credit card debt more than doubled year over year in many of the metro areas hit hardest by the housing market crash, and more than tripled in other cities less affected by the crash. This suggests that consumer confidence in the American economy is growing across the board.

In each of the nation's top 25 metro areas, consumers increased credit card debt by at least 3 percent in 2015 compared to a year earlier. This is a marked contrast to the second quarter of 2014, when just eight of the top 25 markets saw as much as a 3 percent gain over the previous year.

The metro areas that saw the sharpest increases in year-over-year credit card debt were Miami (9.5 percent), Las Vegas (9.4 percent), and Orlando (9.3 percent), while those with the smallest increases were Minneapolis (3 percent), Detroit (3.7 percent), and Seattle (3.8 percent).

 

About Victory State Bank

VSB Bancorp, Inc. (OTCQX: VSBN) is the one-bank holding company for Victory State Bank. As Staten Island, N.Y.’s only community-based commercial bank, Victory State Bank operates five full-service locations on the Island: The main office in the community of Great Kills, and branches in the communities of West Brighton, St. George, Dongan Hills and Rosebank. For additional information, Victory State Bank may be reached at 718-979-1100 or visited online at www.VictoryStateBank.com.

 

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