The amount of money borrowed by consumers typically increases around the end of the year because of the holiday shopping season, and 2011 was no different.
Economists projected that the amount of money being borrowed across all types of loans excluding mortgages during the month of November rose by $7 billion, according to a report from the Associated Press. This marked the second consecutive month in which the amount being borrowed rose, following more than a year of decreases.
Earlier gains in consumer credit came as a result of increases in the amount of nonrevolving debt, that is, installment loans such as those for automobiles and student loans, the report said. But in November, revolving debt, the type most commonly associated with consumer credit card use, accounted for more of the gains as consumers used these accounts to fund their holiday gift shopping.
Consumers who took on debt during last holiday season may now want to consider checking their credit reports. Often, the interest rates they pay on their credit cards can be adversely affected by scores unjustifiably lowered by unfair or inaccurate credit reporting.