US Credit Card Debt Surpasses Financial Crisis Record, As Student And Auto Loans Hit New All Time High

Tyler Durden's picture

Who would have expected that today's otherwise boring monthly consumer credit report would be the day's most exciting event. Well, moments ago the monthly update from the Federal Reserve confirmed that as of the end of June, total revolving (i.e. credit card) credit rose to $1,021.7 billion, an increase of $4.1 billion on the month, and a new all time high, taking out the previous record high set during the summer of 2008.

Coupled with the monthly $8.3 billion increase in non-revolving credit, which also rose to an all time high of $2,834.1 billion...

... means that total consumer credit in June increased by $12.4 billion, slightly less than the $13.9 billion expected and modestly less than the $18.4 billion increase in May, to $3,855.8 billion, also a record high.

Taking a closer look at the quarterly update in non-revolving debt, we find that for another consecutive quarter, both student and auto loans hit record highs, of $1.450 trillion and $1.131 trillion respectively, although there does appears to be a modest slowdown in credit issuance for these two largest categories.

Considering the recent sharp revision to the US household savings rate, which wiped out $250 billion in personal savings with the stroke of an excel pen...

... the fact that US households increasingly have to rely on their credit cards to support their daily lives will hardly come as a surprise.

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Haus-Targaryen's picture

How much consumer debt does this guy have?  Zero. 

FUCK THE BANKERS! PAY IN CASH! 

Dame Ednas Possum's picture

Me too. I don't pay these bastards a penny. 

Life rule: where you can... don't buy it in the first place. 

 

Want little. Need less. Love more. 

 

peopledontwanttruth's picture

Waste not, Want not

This is what happens in a throw away society. When we can throw away children to parents. Nothing is sacred.

froze25's picture

Creditcards are setup to prey on the people that lack self discipline. Use it if you can maintain discipline. For example there are tons of cards available that will give you 100 bucks if you spend 500, thats 20% discount. You have airline cards that will give you like 40,000 free miles if you spend 2000. The simply trick is only spend what you can and use the credit card to pay then pay it all off, never carry a balance. They are counting on you carrying a balance. You can do those above deals, again and again and again. Not so much with the airline cards because there is a limited number of them, but the 100 bucks on 500 is one that you can do every month. Just make sure to cancel the account once you are done so you don't have too many cards.

CheapBastard's picture

I have no debt either, which means I'll be one of the ones sodomized the hardest to bail out bankers, realtors, car owners, students, etc who all enjoyed the fruits of their loans but accepted zero responsibility.

 

This sucks!

There's zero accountability by these debtors since banks are still not foreclosing and students can walk away from their loans much of the time unless they have a license or permit from the state that can revoked.

BullyBearish's picture

If We Were REALLY Smart...NOW is the Time to Max out Credit Cards, Equity loans, Student Loans and Take FULL Advantage of All the FREE MONEY They Want to Give Us!!!!

Antifaschistische's picture

I drive by the Westin in Houston (Gessner/I-10) on a Saturday night and it's like a hoochie convention is in town EVERY single Saturday.  I KNOW they are racking up the CC debt pretending to live some VIP lifestyle.   I can't wait for that bubble to burst.

gilhgvc's picture

Try living in Las Vegas....... EVERYTHING here is cheap and plastic

GoldRulesPaperDrools's picture

Does that include the poontang? ;)

Oldwood's picture

The whole world is designed to prey on the weak and simple minded. It used to be considered part of evolution.....or letting God sort them out, but today it is the weak and simple minded that are the protected class, the "special" people.

While all this shit makes us feel good....like we are somehow "better people" in reality it is simply dumbing us all down to a more "manageable" population. We are being conquered by indoctrinating us toward surrender and ulti.ately suicide.

peopledontwanttruth's picture

Yeah I've done that. Use them like they've used so many. It's a law of averages for them with probably 90%+ not doing as you said.

hongdo's picture

Airline cards have sent me around the world 4 or 5 times for free.  Free to Bangkok next week.  Just always pay in full on time.  You can get the new card bonus every 2 years  if you cancel and reapply.  Last time was 70K miles, enough for a free ticket to Europe.

vealparm's picture

Pisses me off how my daughter and her husband allow her kids to throw away food both at home and is restaurants. They ask for all kinds of stuff, the parents give/order it for them, they take a few bites then claim they are not hungry or don't feel good. Parents excuse them from table and cheerfully throw the food away.

Angry White Guy's picture

Doesn't work well with 99% of women in this country.  Only thing that works for them is MOAR.

But yes, I agree.  Been working towards minimalism lately and it can be liberating.

froze25's picture

I have war gamed the situation if my wife were to ever divorce me. I always come to the same conclusion of living in a RV.

Oldwood's picture

Which is WHY my wife continues to say NO to an RV.

hongdo's picture

A guy who worked at my company and on my project for a short time did that.  He had an RV parked in the company parking lot and lived in it.  The company had a gym with showers.  I was told he never even cashed his paychecks.  Kept'em in a drawer in a desk in his RV.  There were a lot of characters in the old days.  I don't know how it is now but over time people seemed to get more timid.

peopledontwanttruth's picture

Doesn't work well with 99% of women in this country. Only thing that works for them is MOAR.

Ha, I always tell people the economy at least the retail side would have collapsed long ago if it depended on men.

They get it honestly as it was Eve who went shopping first in the Garden of Eden.

NashSolstice's picture

Ya take what ya need and ya leave the rest

-The Band

cossack55's picture

Also Joan Baez "The Night They Drove Ol' Dixie Down"

cheeseheader's picture

Say, you got a sister running around loose maybe?

GoldRulesPaperDrools's picture

I agree with your general premise, but I will fork over some dough for .223 or 9mm/.40 cal ammo if I can't find a good deal in bulk.  Hi-cap mags too.  Always good to have more of those kinds of things than less. ;)

venturen's picture

you are dumb.... Borrow max allowed at 1% and then just don't pay it back.

Millennial Intellect 

GunnerySgtHartman's picture

Speaking of 'millenial intellect,' I heard a thing on the radio today: a new thing among millenials is that skipping credit card payments will improve their credit score.  <<facepalm>>

CheapBastard's picture

Why pay it back? There's no downside to simply walking away these days.

 

Frugal people (like me) get screwed indirectly since we are taxed higher and/or suffer the consequences of massive bailluits with soaring food prices as a result of the fed QEs...all while they hold the CPI down at zero.

GunnerySgtHartman's picture

Same here, no plastic/car debt and only $8k left on the mortgage.

techpriest's picture

Similar case here (a little more on the mortgage but I'm about a year out from freedom). Do you also get a lot of people who tell you that you just *have* to have a credit card with the 1% cash back?

hongdo's picture

Mortgage burning party on the horizon.  I felt great when I got rid of mine.  Go for it.

The Divided Stoopids of DuhMerica's picture

Me as well.... No Debt!!!

Debt should be used as a tool.... Not as a lifeline.

Madison&#039;s_Ghost's picture

I use CC all the time.  They are indispensible as I shop a lot online.  However, I pay my balance off at the end of every month, have for years.  I cant remember the last time i carried a blance, or paid them any interest. 

To me thats worse for them than not using CCs at all.  Make me chuckle thinking about it.

Bill of Rights's picture

Looks like confidence to Me! GO TRUMP!!

Snowflake fags hate the truth

GlassHouse101's picture

You have too much debt in debt notes! 

venturen's picture

no worries we don't have to pay it back...we will just print moar....How Soviet of you!

peopledontwanttruth's picture

"And all the kings horses and all the kings men couldn't put Humpty Dumpty back together again"!

Only when people can learn to live within their means does this get better. Will it with the Exceptionalism Attitude, me don't thinks so.

The Cooler King's picture

If you loan it, they will come

chrsn's picture

You don't have to be a poseur to live above your means, but it sure helps

Stormtrooper's picture

Congratulations Americans.  You have finally set a record that the rest of the world can't match.

GoldHermit's picture

Tick, tick, tick

Seasmoke's picture

They are starting to throw credit card offers my 550 FICO way again. Last time that happened was 2007. ........ DANGER.  DANGER.  

RagaMuffin's picture

Considering how many ways things can go spectacularly wrong, I must confess to some curiousity as to how it will all plays out.....

corporatewhore's picture

Several responses as to what could go wrong:

It just doesn't matter.  (meatballs)

See your future, be your future. (caddyshack)

What difference does it make? (HRH  HRC)

I'm looking for a Jefferson Starship line: "the storms are brewing in your eyes"

rejected's picture

Americans complain about a 20% tariff to bring jobs back but have no problem paying 20-30% interest on debt because they cannot find jobs paying enough for their budget or just buying foreign shit they don't need. 

As lunatic as the governments debt binge.

debtor of last resort's picture

Americans in creditcards, the Dutch in housing, the Chinese in BTC.

As long as there's MOAR, its GOOD!

Mama san sucks you long time bitchez.

Ignorance is bliss's picture

The way I see it consumers should leverage up. The Dollar is losing purchasing power. The debt will be inflated away on a long enough timeline. I very much doubt King Dollar will retain purchasing power in the future. The money train is shifting east. You can't go apeshit, but using debt to buy key assets that retain real value over the longer term is a good idea.