I wonder if this is the consumer taking advantage of low rates and locking them in for a longer period, but a definite divergence between revolving and non-revolving consumer credit.
Business Week details:
Consumer borrowing in the U.S. rose in April for the first time in three months, indicating a recovery in bank lending will take time to develop.
Revolving debt, which includes credit cards, dropped by $8.5 billion in April. The decline was the 19th straight and signals consumers are taking steps to reduce debt. A decline in late payments indicates they may be having some success.
Non-revolving debt, including loans for cars and mobile homes, increased by $9.4 billion in April, today’s report showed.
Source: Federal Reserve