The Fed's Consumer Credit Report for May shines a bright spotlight on a huge problem.

In May, consumer credit increased at a seasonally adjusted annual rate of 7-1/2 percent. Revolving credit increased at an annual rate of 11-1/2 percent, while non-revolving credit increased at an annual rate of 6-1/4 percent.

To keep consumption up, consumers must borrow more and more. And rates keep going up.

New Auto Loan Rates

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​Credit Card Rates

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​What can possibly go wrong here?

Mike "Mish" Shedlock

Consumers Turn Frugal On Cards but Nonrevolving Credit Up Sharply

Total consumer credit rose $19.9 billion in August but credit card debt fell after a sharp rise last month.

Consumer Credit Up 3.1%, Revolving Credit Unexpectedly Declines

After a blistering May, revolving credit fell 0.2% in June as overall credit continued its upward march.

Families Go Deep in Debt to Stay Middle Class: Revolving Credit Jumps 11.2%

The Fed's consumer credit report shows a jump in total credit and an even bigger jump in credit card debt.

Stock Ownership Rate Plunges as Credit Card Debt Soars

The savings rate is at a 12-year low. Revolving credit is at a record high and the stock ownership rate has plunged.

"Ultra-FICO" to Boost Credit Scores Giving Millions More Access to Credit

Just in the nick of time not: Fair Isaac is launching a new type of credit score that will give millions more credit.

Consumer Spending Projections

Every month the NY Fed surveys consumers as to what they will spend in the upcoming year. The Downtrend is still intact.

Debt Deflation Setup: Credit Card Defaults and Subprime Auto Delinquencies Rise

Serious mortgage delinquencies are leveling off and remain one recession away from a serious upswing. Credit card and auto loan delinquencies are already on the rise.

Car Dealers Make More Profit On Loans Than Selling Cars

A third of auto loans in 2019 had a term period over six years. People cannot afford the cars they are buying.