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Consumer Credit Surges Most In Three Years

Tyler Durden's picture




 

If you like living beyond your means, you can keep on living beyind your means. US Consumer credit grew by over $26 billion in July - smashing expectations of $17.35bn - and rising by the most since 2011. As usual, the leap was led by non-revolving credit (rising $20.6 billion) as auto and student loans continue to surge.

Consumer credit grew at its fastest pace in three years.

 

As non-revolving credit (Auto loans and student loan dominated) surged fastest since 2011.

 

And here is how much student and car loans Americans have raked up each month since 2011. In a nutshell: in 2014 alone there has been some $117 billion in non-revolving debt.

 

This compares to just $23 billion in revolving credit being issued to US consumers.

 

Charts: Bloomberg

 

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Mon, 09/08/2014 - 15:13 | 5194659 Dr. Engali
Dr. Engali's picture

It's a sad day when eating is considered living beyond your means.

Mon, 09/08/2014 - 15:16 | 5194682 JRobby
JRobby's picture

And that is what is happening.

And that will happen when you have a government that lies continuously holding out false hope to those that still believe them.

Mon, 09/08/2014 - 16:20 | 5194983 RaceToTheBottom
RaceToTheBottom's picture

Especially when you are eating dog food and pink slime.

Mon, 09/08/2014 - 21:00 | 5195990 ClowardPiven2016
ClowardPiven2016's picture

Even dog food is up 8% this year

Mon, 09/08/2014 - 15:24 | 5194715 Berspankme
Berspankme's picture

STUDENT LOANS

Mon, 09/08/2014 - 15:34 | 5194756 Eyeroller
Eyeroller's picture

CAR LOANS

Mon, 09/08/2014 - 15:40 | 5194784 Dr Strangemember
Dr Strangemember's picture

This ain't gonna end well.  Now way!!!!

Mon, 09/08/2014 - 15:12 | 5194661 wallstreetapost...
wallstreetaposteriori's picture

If you like your car and dont or wont want to pay for it.... you can keep your car... and your house... and get moar credit in just a few short years!

Mon, 09/08/2014 - 15:20 | 5194700 Oldwood
Oldwood's picture

Does credit funded consumption indicate improving consumer confidence that they will be able to pay for it in the future, or that they will never have to pay for it in the future? What is the modern meaning of "confidence"? I know I'm more confident every day that this thing is going to blow big...really big.

Mon, 09/08/2014 - 15:44 | 5194800 Never One Roach
Never One Roach's picture

Max out your credit cards ... get the zero-down 5 yr no interest car loan ... grab a zero-down house with no interest 5 years and you're half way there to level II of the FSA ... as long as you've discovered that you never have to pay a dime on anything again! It'll be years before they throw you out of the house and creidt cards are unsecured loans. You might want to pay a bit on the car since they can tow that vehicle away.

There with your brand new car drive to the SSDI office and apply for free support. You may have to walk a bit but go down the hall there to the EBT office where you get card you can use anywhere you want for free food. Next stop free health insurance for you and your 8 kids. And don't forget your Obamaphone and with a bunch of free minutes to call yo pals wit.

This is the New Merikan Paradigm. Ain't it sweet!

Mon, 09/08/2014 - 15:13 | 5194665 WTFMOFO
WTFMOFO's picture

Seriously at this point why not?  I mean when the fucker implodes at least you will have the tractor, chickens, chainsaw, stocked food, tools and gold/silver you purchased on credit.....Oh wait, you idiot, you used credit to buy a sportscar, Iphone and Nikes?

 

 

Mon, 09/08/2014 - 15:26 | 5194717 Oldwood
Oldwood's picture

Nah, just hair implants and a little edumacation through a federally funded student loan program, a Hindi language course in producing professional job application forms, with a minor in Coyote bus driving skill for our southern border. Its always important to have a trade to fall back on.

Mon, 09/08/2014 - 15:38 | 5194777 Dr Strangemember
Dr Strangemember's picture

Don't forget the water well, solar panels and home in the "rural".  

Mon, 09/08/2014 - 15:14 | 5194669 Xibalba
Xibalba's picture

"Consumer credit" Isn't that another way of saying "Debtslave"? 

Mon, 09/08/2014 - 15:18 | 5194691 Dr. Engali
Dr. Engali's picture

I like the term bankster bitch better. It seems a little more fitting for today's gangster culture.

Mon, 09/08/2014 - 15:23 | 5194708 Grande Tetons
Grande Tetons's picture

I started wearing those baggy jeans with my underwear showing just to prove that I am hip. The sideways ball cap...was pushing it too far for me. 

Mon, 09/08/2014 - 15:29 | 5194724 Dr. Engali
Dr. Engali's picture

Don't forget the wife beater shirt, a real gangster wears a wife beater shirt....... And gold chains, thick gold chains, lots of them.

Mon, 09/08/2014 - 15:32 | 5194749 Grande Tetons
Grande Tetons's picture

If I ever wore a wife beater shirt my wife would see to it that I am wearing my own testicles for earrings. 

Mon, 09/08/2014 - 15:45 | 5194807 Never One Roach
Never One Roach's picture

And da Bling ... dont forget da Bling, dude!

Mon, 09/08/2014 - 15:49 | 5194829 froze25
froze25's picture

You need to go with the lesser known "Wife Slapper" shirt.  It is a Tee shirt that must be atleast one year old with the sleeves cut off.  Usually it has some type of heavy metal bands name on it but that is not required.

Mon, 09/08/2014 - 16:15 | 5194939 Wait What
Wait What's picture

all youz on this thread must be ancient.

you must have all grown up in the 80s.

i had to google all that stuff just to figure out wtf you were talking about.

i don't think i've seen anyone wearing such far out accoutrements anywhere except in archival footage of events like the LA riots.

funny, at least.

Mon, 09/08/2014 - 16:47 | 5195087 Wait What
Wait What's picture

a teenage canadian girl?

Mon, 09/08/2014 - 15:51 | 5194839 corporatewhore
corporatewhore's picture

and gold teeth

Mon, 09/08/2014 - 15:16 | 5194676 ebworthen
ebworthen's picture

Oh look, consumer credit (debt) is about where it was before Greenspan pulled the plug (raised rates), and initiated the last crash.

Coincidence, or part of a diabolical plan?

Mon, 09/08/2014 - 15:41 | 5194789 Dr Strangemember
Dr Strangemember's picture

I bought a bunch of firearms on credit!!  : )

Mon, 09/08/2014 - 16:19 | 5194974 SheepDog-One
SheepDog-One's picture

As many serfs on the hook as possible.

Mon, 09/08/2014 - 15:15 | 5194678 wmbz
wmbz's picture

Considering the great American consumer will camp out on a sidewalk for weeks at a time in order to buy a fucking telephone or pair of sneakers, it is no surpise they are diving into  deeper and deeper debt.  Just wait till Christmas the fat assed hoards will really get to charging. It's the American way!

Mon, 09/08/2014 - 15:16 | 5194685 p00k1e
p00k1e's picture

What exactly, if anything is protected in personal BK?

Say you have a paid off house and paid for car and 800 credit score.

Is it ‘legally’ OK to structure the score from 800 to 8 knowing when that day surely comes, just BK ‘cause you still have that original house and the original car? 

What’s the code – ‘unsecured debt’?? 

Mon, 09/08/2014 - 15:25 | 5194712 JRobby
JRobby's picture

Keep

 

-House

-Car, FMV up to $5,000

-Normal level of household goods.

Everything else could go to trustee

Mon, 09/08/2014 - 15:28 | 5194727 jackstraw001
jackstraw001's picture

The house depends on what state you live in.  If you love and trust your spouse, make the sure the house is in their name for a period longer than the lookback period for fraudelent transfer of assets (generally 2 to 3 years). 

Mon, 09/08/2014 - 15:42 | 5194793 p00k1e
p00k1e's picture

Thanks guys.

On second thought, would it be better to keep the credit score and instead, over insure then torch the house. 

During the arson investigation as soon as the inspector finds the high credit score, they’ll dismiss fraud right off the bat and clear the cash-out check.

Mon, 09/08/2014 - 15:58 | 5194875 Seasmoke
Seasmoke's picture

I like plan 1 better. Way too many things can go wrong with arson. But I will give this advice. If you light the match. Do NOT go back to see how it's going. That's how most get caught. 

Mon, 09/08/2014 - 15:21 | 5194702 Comte d'herblay
Comte d'herblay's picture

This is not unusual at all since it is simply due to the weather. 

Mon, 09/08/2014 - 15:37 | 5194771 Eyeroller
Eyeroller's picture

And the coming winter is predicted to be especially harsh (i.e. reality wise), so just think of the numbers yet to come...

Mon, 09/08/2014 - 15:21 | 5194703 JRobby
JRobby's picture

American consumer

deeper and deeper

camp out

fucking telephone

fat assed hoards

on a sidewalk

sneakers

wait till Christmas

pair of

debt

Mon, 09/08/2014 - 15:39 | 5194776 Farmer Joe in B...
Farmer Joe in Brooklyn's picture

Beautiful....

Mon, 09/08/2014 - 15:22 | 5194705 q99x2
q99x2's picture

I have to borrow money to pay back friends that I borrowed money from because they are having to borrow money now.

Mon, 09/08/2014 - 15:23 | 5194711 buzzsaw99
buzzsaw99's picture

it is no surprise that the fastest growing subprime categories are gubbermint guaranteed

Mon, 09/08/2014 - 15:26 | 5194720 Moe Hamhead
Moe Hamhead's picture

Next up --- the holiday rush.  Wait and see!

Mon, 09/08/2014 - 15:41 | 5194794 Dr Strangemember
Dr Strangemember's picture

Lay Away at the Kmart!!!!

Mon, 09/08/2014 - 15:50 | 5194723 Chuck Knoblauch
Chuck Knoblauch's picture

You have to save Walmart!

Amazon too!

Amazon giving away Visa cards.

$1500 limit/$300 cash advance.

To people with shitty credit historiy/no job.

Please spend til it hurts.

Apply today and hurt tomorrow.

Mon, 09/08/2014 - 15:34 | 5194753 walküre
walküre's picture

The little guy wants to feel special too! If all else fails, buy that POS of a depreciating asset with a 96 months / zero down / zero payments for first 3 months / free fuel for a year / free maintenance and free headaches NOW!

As soon as they drive these POS off the lot, they've already lost 30% of the "value".

Consumers don't think. Consumers are not educated and never will be. Consumers are sheep that need to consume. Back to back car commercials 24/7 and that's where the payments are going.

The advertising is huge, the product is crap but it sure feels good to drive a set of new wheels....

Problem is that anyone who is looking to buy cash and expects to get a decent product is finding that impossible. The cars are built for mass consumption just like cheap Chinese toasters. They will fail, they will break down, overheat and whatnot. Best to finance and let the manufacturer and dealer sort out the problems with the new cheap made cars. But beware, your time will not get compensated.

Low end, high end doesn't matter. Under the hood is all the same crapola.

Germany's richest family with 30 billion net worth is in the business of "car parts" making. Guess why?

Mon, 09/08/2014 - 15:46 | 5194810 corporatewhore
corporatewhore's picture

logical yes. makes sense yes.

try telling that to the mrs or mr or significant other.

Mon, 09/08/2014 - 15:55 | 5194862 froze25
froze25's picture

My wifes honda is doing great 3 years in to the purchase.  Regular maintence no issues and about 75,000 miles on it.  She drives alot.

Mon, 09/08/2014 - 19:04 | 5195610 foodstampbarry
foodstampbarry's picture

I got something for her to drive.

Mon, 09/08/2014 - 15:36 | 5194766 Seasmoke
Seasmoke's picture

 I'm getting APPROVED credit card offers every other day again. WATCH OUT BELOW !!!

Mon, 09/08/2014 - 15:39 | 5194779 A82EBA
A82EBA's picture

i remember seeing all the Countrywide commercials then they were gone

Mon, 09/08/2014 - 15:40 | 5194786 Eyeroller
Eyeroller's picture

Buying stuff you want but can't afford with plastic that will have to be paid back eventually (with interest). 

What could go wrong?

Mon, 09/08/2014 - 15:43 | 5194799 Chuck Knoblauch
Chuck Knoblauch's picture

The law of diminishing returns.

Fewer people will take part.

Stick that in your forecast.

Mon, 09/08/2014 - 15:46 | 5194811 QQQBall
QQQBall's picture

Spain - a shining example of Debt Management

Mon, 09/08/2014 - 15:49 | 5194825 Obama_4_Dictator
Obama_4_Dictator's picture

Here's how rigged it is....short sold my shit condo a year ago...credit score never dropped below 706....now it's at 750 "excellent"...no I don't take loans out, they are getting desperate

Mon, 09/08/2014 - 19:27 | 5195647 Black Warrior W...
Black Warrior Waterdog's picture

Yep... mailed in the keys to my underwater Cali condo two years ago and my score is already back up to 720. Except I won't get sucked back in this time.

Mon, 09/08/2014 - 15:55 | 5194861 TalkToLind
TalkToLind's picture

Here's the truth, bitchez:  I'm broke due to TAXES.  The money I saved...all if it went to real estate taxes and federal taxes.  And next year I well get dekcuF even harder so that we can have "better drones" and "safer air travel" and shit. That's why my credit card balances are rising; so that I can afford TAXES.  Uncle Sugar is responsible for sending my ssA to the poor house.

Mon, 09/08/2014 - 16:01 | 5194891 Thomas Aquinas
Thomas Aquinas's picture

“There are two ways to conquer and enslave a country. One is by the sword. The other is by debt.”
– John Adams

 

When the debt is at max, then the Money Power are going to collapse the economy.

 

“The purpose of this financial crisis is to take down the U.S. dollar as the stable datum of planetary finance and, in the midst of the resulting confusion, put in its place a Global Monetary Authority [GMA - run directly by international bankers freed of any government control] -a planetary financial control organization”- Bruce Wiseman (financial consultant and author of the book and movie Crisis By Design.)

 

Mon, 09/08/2014 - 16:19 | 5194978 SheepDog-One
SheepDog-One's picture

FREE MONEY everywhere YAY it's a celebration!!

Mon, 09/08/2014 - 16:41 | 5195060 esum
esum's picture

cars on credit......... invest in repo

Mon, 09/08/2014 - 17:34 | 5195238 homebody
homebody's picture

I'm starting to feel like an idiot.  I paid cash for my land, garden, tractor, chainsaw, beans, bullets, well, house, truck, etc when I could have put it on the CARD and walked away from the debts.  I'm certain now that the electronic currency controllers will be able to keep our slow downward spiral going for many more years.  By the time it all crashes I will also be destitute because of ever increasing property taxes as they will be the last money grab left.

Oh well, who is John Galt.  As Rand wrote "Jim said, its just a temporary condition, everyone knows that. It will be fine by spring. You can't blame me." (or something like that)

Mon, 09/15/2014 - 14:14 | 5219324 Melody7773
Melody7773's picture

You know, auto and student loans continue to surge because nothing is being done about this issue. It is really tough, but it really seems to me that it will all only become worse. The saddest part is that education is necessary in our society and students will continue applying for student loans (and very often not paying off). I honestly don’t even know what could change this situation. Maybe we should demand diplomas less from job applicants and focus on their skills. It should help to decrease debt. Well, not decrease, but stop it a little from getting bigger.

 

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