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12/05/2011 -
In March, consumer borrowing in the United States rose for the sixth month in a row, thanks to an increase in non-revolving credit, credit card use and auto loans.In a recent release, the Federal Reserve said that borrowing in March had increased by $6 billion, after gaining $7.6 billion February. Many financial experts said that consumers were starting to feel more financially secure, and as a result were able to borrow more money than before.
"Consumers are feeling a little more confident about the economic outlook and their own financial situation," Russell Price, senior economist at Ameriprise Financial Inc., said in an interview with Bloomberg. "Things will improve incrementally from here. As job growth continues, we should continue to see pretty good consumer spending."
The Fed's data also showed that revolving debt for credit cards and other types of borrowing had increased $1.9 billion in March, the second time it had made gains in the last four months.
The Federal Reserve made other news when it comes to payment processing, thanks to a new fee limit. The Fed has proposed a rule that would cap debit card fees charged to merchants at 12 cents, a stipulation that many businesses look forward to seeing passed.
