WASHINGTON (MarketWatch) – U.S. consumers took on more debt in May, led by auto loans, the Federal Reserve reported Tuesday. Total seasonally adjusted consumer debt increased by $7.8 billion, or a 3.6% annual rate, in May to $2.57 trillion. This is about the same pace as April. Credit-card debt rebounded by $5.7 billion, or 7.1%, in May to $961.8 billion, after falling in April for the first time since May 2005. Non-revolving credit – such as auto loans, personal loans and student loans – increased by $2.1 billion, or 1.6%, to $1.61 trillion, much slower than the 6.2% rise in April. —-

Mortgages are not reported in this calculation because mortgage debt is considered long-term and not part of consumer credit, even though one’s ability to get favorable terms is directly affected. But, the bottom line is this: we are more in debt than ever in order to finance our lifestyles.  This is not good. When you can’t pay or the debtor demands you resolve the account, what are you going to do? Borrow more money????

In addition, notice how credit card debt rebounded 7.1%. Thanks Mr. Stimulus Package!!!! You truly were worthless.  Let’s not be judgmental yet. Wait until all the disbursements are sent before you prove just how worthless you really are.