The Federal Reserve reported on Monday afternoon that total outstanding U.S. consumer credit rose 4.4% in July, from a revised estimate of $2.842 trillion in June to $2.852 trillion. A total of $850 billion is revolving credit while $2 trillion is non-revolving. Consumer credit in the Fed’s G.19 report includes short- and medium-term credit to individuals, and does not include home mortgages.
Revolving credit, which includes credit card debt, was down 2.6% in July after dropping 5.2% in June. Non-revolving credit, which includes car loans and student student loans, rose 7.4% in July after a 9.5% jump in June.
The jump in new car sales in July likely drove the non-revolving portion of consumer debt. Another jump could then be predicted for August, when new car sales were even higher than they were in July.
As for student loans, JPMorgan Chase & Co. (NYSE: JPM) announced last week that it planned to get out of the student lending business as more scrutiny from regulators and federal government programs are taking a larger share of the business. The federal government’s consumer lending total in July was $571.9 billion, more than triple the total outstanding at the end of 2010.
ALERT: Today Could Be Your Best Shot At Early Retirement (Sponsored)
If you want to retire before 65, pay attention. Study after study has shown that the longer you stay invested, the better your chances at an early retirement.
Every day that goes by without saving and investing for tomorrow means more to earn and save later. Don’t waste any more time and get started with Robinhood today. The app makes it easy to buy and sell stocks, mutual funds, trade options, and even cryptocurrencies.
Sign up today — click here to start your journey.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.