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

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.

Comments

froze25 (not verified) peopledontwanttruth Mon, 08/07/2017 - 15:46 Permalink

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.

In reply to by peopledontwanttruth

CheapBastard froze25 (not verified) Mon, 08/07/2017 - 15:54 Permalink

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.

In reply to by froze25 (not verified)

Oldwood froze25 (not verified) Mon, 08/07/2017 - 16:18 Permalink

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.

In reply to by froze25 (not verified)

hongdo froze25 (not verified) Mon, 08/07/2017 - 17:32 Permalink

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.

In reply to by froze25 (not verified)

peopledontwanttruth Mon, 08/07/2017 - 15:26 Permalink

"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.

rejected Mon, 08/07/2017 - 15:42 Permalink

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.

Ignorance is bliss Mon, 08/07/2017 - 15:48 Permalink

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.