The Federal Reserve's consumer credit report for August 2013 shows a 5.4% annualized monthly increase in consumer credit, driven by student loans.  Once again student loans increased, while credit card debt declined.   Revolving credit declined by -1.2%, and non-revolving credit jumped another 8.0%.  This is the third month in a row revolving credit has declined.

The Federal Reserve's consumer credit report for November 2012 shows a 7.0% annualized monthly increase in consumer credit, once again driven by student loans. Revolving credit increased by 1.1%, and non-revolving credit jumped another 9.6%. October showed consumer credit increasing by a 6.2% annualized rate.

Banks are busy putting the screws to the middle class once again, this time in the form of reduced credit. The Wall Street Journal reports Residential Loans, refinance of mortgages and home equity loans are being subject to absurd credit requirements.

Are the banks going to investigate if you chewed gum and if so, deny you a loan for it next?

Recently, Mr. Berg arranged a refinancing for a borrower with a very high credit score and lots of home equity and debt payments totaling just 19% of pretax income. But Mr. Berg said the lender was worried about a credit report showing a $14 missed payment to a credit-card company in 2001. The lender insisted on proof the money had been paid, which Mr. Berg said was impossible to get.

"Who cares?" he said. "It's nine years ago, and it's $14." He appeased the lender by having the borrower write a $14 check, though no one knew where to send it.

Pete Ogilvie, a mortgage broker in Santa Cruz, Calif., hasn't found a bank that will refinance a $250,000 loan on a $1 million property for a borrower with more than $200,000 a year in income and a high credit score. Banks balked because the borrower, a technology executive, was out of work for nearly a year starting in 2008.