Americans are borrowing again, although the message from the release is “little changed” despite this being the second month of gains. The Federal Reserve just released data from November-2010 showing that revolving credit decreased and non-revolving credit rose.
November followed gains in October, again with a mixed breakdown of the components. Seasonally adjusted consumer debt increased by about $1.35 billion and that is at 0.7% on an annualized rate. The tally of $2.4 trillion is roughly in-line with forecasts. Bloomberg had expectations of a $2 billion increase versus the $3.4 billion shown in October. October was also revised higher to being up 3.5% rather than 1.7%.
Revolving credit, i.e. credit cards, is down again by -6% after a revised -8.1% as Joe Public doesn’t want credit card debt. This appears to cross the two-year mark for declining credit debt.
But the loans from vacations, student loans, autos, and on showed that the non-revolving credit, such as auto loans, personal loans and student loans, which rose $5.56 billion or 4.2%.
The total credit of $2.403 trillion will be interesting to see as we get into the December data. Consumers generally use their credit cards more around the holidays, but that is still outstanding data for now.
JON C. OGG
ALERT: Take This Retirement Quiz Now (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
