US Credit Card Debt Surges Above $1 Trillion, Just Shy Of All Time Highs As Student, Car Loans Breach Records

Tyler Durden's picture

Earlier in 2017, using the latest - and soon to be revised - Fed data, newspapers and financial media reported that US consumer credit card debt had risen above $1 trillion for the first time since the financial crisis.

Ironically, just a few months later the Fed revised its data series sharply lower, sending the revolving credit total back under this "psychological number." At least until recently, when the latest consumer credit update from the Fed disclosed that in October, consumer credit rose by $20.5 billion, more than the $17.5 billion expected, of which $12.2 billion was non-revolving, auto and student loans, and $8.3 billion was credit card debt. This was the biggest monthly increase in credit card debt since last November's (revised) $12.3 billion. 

Total consumer credit rose by 6.5% Y/Y, rising to $3.802 trillion as of Oct 31. That number is more than double the rate of increase of US GDP or wage growth, making it clear just where America's "purchasing power" comes from.

Finally, this was also the single biggest monthly increase in consumer credit since November 2016.

And while nonrevolving credit reached a fresh record high of $2.791 trillion, revolving - or credit card debt - is now back well over a trillion dollars, or $1.011 trillion to be precise, and fast approaching the all time bubble high of $1.02 trillion hit in the summer of 2008.

And speaking of student and auto loans, the Fed's latest data showed that in the third quarter, these rose to a new all time high, of $1.108 trillion for auto loans, and a record $1.486 trillion in student loans. The Fed also reported that nonrevolving lending to consumers by the Federal government, which is mainly student loans, rose to $1.137t, on a non-seasonally adjusted basis.


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FreeShitter's picture

what happened to pull it?

shankster's picture

got pulled at the last minute

bobcatz's picture

Credit Card DEBT is just one aspect of the American CURSE.

MonetaryApostate's picture

The monthly interest charge on that would be $15.75 Billion dollars, think about it hard.

Fake money, fake debt, fake value, fake news, fake investments, fake markets, fake history, fake leaders, fake events, fake elections, fake foods, fake medicines, yes fake everything!

Chupacabra-322's picture

The Economic System of Fraudulent Debt, Bondage & Enslavement.


The banks are evil, but then again these over-consumers have to meet them half way.

PrivetHedge's picture

So that's what's feeding bitcoin.

shankster's picture

that along with a stagnant annual US household income.

Simplifiedfrisbee's picture

MAGA (because im too much of a facisct moron to comprehend basic socioeconomics).

Hikikomori's picture

Graphs are illegible.

Rainman's picture

Looks like there's gonna be a helluva bonfire at the debt jubillee when it comes to town.

Captain Nemo de Erehwon's picture

No need to be shy of 1 Trillion ...soon a bitcoin will be that much

RafterManFMJ's picture

Reflex fuckers; by this time next year I will pay off the National debt myself.’

You’re welcome.

rejected's picture

Fake money begetting more fake fake... 

The reset cometh.

shankster's picture

for those of us with color blindness that car-loan student-loan graph looks psychedelic

LawsofPhysics's picture

sheep buying bitcoin with debt...


fuck em.

shankster's picture

Stocks will only go higher on this news, it's a debt fueled economy and it will speed along until the motor quits.

wmbz's picture

Not a suprise, the consumer is on track to set a new debt record, and you can bet they will.

It's what they do, born raised and trained. Debt serfs from craddle to grave.



aliens is here's picture

Gotta buy them $1000 phones and 50 inch LCD 4K TVs.

RafterManFMJ's picture

50”?! lol you on the welfare brah?

Moe Howard's picture

80" OLED 4k.

Where have you been?

Consuelo's picture



4k was never more than a stepping stone to 8k.   And there is definitely a difference.   3 years from now, 4k will be like 1080 is today.

Moe Howard's picture

IMHO 8k will only matter if you have a huge screen, bigger than 80".

Parabolic Sine's picture

I have always wanted a projector, mostly for my golf simulator but I think my after work xboxing sessions would be fairly tight.

HRH of Aquitaine 2.0's picture

Meh. I have to wear glasses now. Could I tell the difference? Probably not.

My next TV will cost half of what I paid for a 10-year old 42-inch I watch now.

I have a love / hate relationship with TV. It isn't something I brag about.

Anyhow, I am still planning on living in a Class C RV for a few years. Even my old 42-inch would be overkill. The problem with having a TV in an RV is it needs to be able to handle the bumps and temp. changes. I will be chasing 65 degrees so not looking to be where it is too hot nor too cold but definately could be colder / warmer than a house.

JohnGaltUk's picture

Dude I have 5 50 inch TVs in my home and my Mrs wanted to buy another for the dinner room. I put my foot down and said no way. Fuck as a family we don't talk anymore and the four of us can be in different rooms watching shit. I so wanna rip out these TV's and make my boys read good quality books but trying taking drugs away from a drug addict. They are not on credit and I have no debt but I have made a big mistake. I have breed into my family entitlement and my boys are not being taught value.

My oldest boy is 14 and just expects shit. Ask him to take the trash out and its a fucken 1/2 hour conversation; why should I do shit. At his age I was at school working 5-9 on a Friday Night and 10 hours on a Saturday & Sunday. On some Saturday nights I would do weddings and 21st with my discotique that I had built from scratch. I would earn more than my sister on a Saturday night for 4 hours than she would working full time for a week.

I ask him to read Miton Friedman, Ayn Rand, Martin Armstrong and many others and he just wants to play Halflife or Call Of Duty.

DO not spoil your kids, you will get no thanks and you will mess up their lives, this situation will take a lot to rectify. Damage done, teach them real values, morals and ethics.

AyatollahOfRockandRollaaa's picture

Yours is my favorite comment today.  It made me sad, but I think that's a valid response nowadays.

derryb's picture

And whose fault is this, the democrats?

silverer's picture

The banks are rolling the paper up on carts to run up your ass with it. Useless US dollars, created for free for the banks, which they use to steal from you. It's a great idea for the bankers and Wall St. Get in on the criminality and be a banker. As they say, the best way to rob a bank is to own one.

Moe Howard's picture

Good thing Giant Meteor is coming or they might have to pay some of that back.

VZ58's picture

Wow. What a strong sign of American consumer confidence, right? Right? What could possibly go wrong for all these indebted slaves? The future looks AWESOME! 

J J Pettigrew's picture

debt used to be referred to as future consumption it is proof of a good empty beer bottles

HRH of Aquitaine 2.0's picture

Stupid. People never learn. I hate paying interest. I have credit cards but I also pay the entire balance every month.

J J Pettigrew's picture

forgive the student loans
forgive the credit card debt
forgive the national debt
why not?
you saved your money? didnt you know the Fed would keep rates below inflation for 9 years as the Dow trebled....all because the economy was weak and there were fears of deflation as prices rose AT LEAST 15%?

aliens is here's picture

The money we wasted in the Iraq war we could pay off $5 trillion worth of loans and give everyone a clean start. I fking hate the Bushes.

CRM114's picture

Everybody over 30 with credit is betting that their life will never be disrupted, and interest rates will never rise. Everybody below 30 is betting their life will only improve. Neither has any basis for those bets. It's like the Titanic; they are all on the same big shiny new boat, and nobody believes even in the possibility of it sinking, because nobody around them does either.

Parabolic Sine's picture

I have a credit card for the rewards. 2% of all of my purchases goes to my retirement account. If it wasnt for those rewards, I’d buy everything with cash. I pay the balance in full each month, so no interest just like a dividend every couple months gets deposited into my ROTH.

yaright's picture

One Hicup and this baby ignites

wcvarones's picture

Hope they bought some Bitcoin with that credit card debt.

Teletubby's picture

That'd be illegal. Also, anyone still playing by the rules is poor.

coast1's picture

and christmas is still 18 days away, so you can raise the credit card debt another 100 billion by end of year

qwertyFUBAR's picture

Q: Why is the 'student loans" such a straight rise? Is this throttled in some way?

SummerSausage's picture

A: Because Obama made it a government program. Nobody cares if you borrow $500K to study wymen's free verse in Pig Latin and the colleges are happy to tell you prices are going up 10% next year.

SummerSausage's picture

Zero Hedge promised me that used car prices would PLUMMET by October.

Still waiting.

JibjeResearch's picture

Me too.., I'm still waiting for a new car...