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
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
