US Credit Card Debt Rises Above $1 Trillion As Student, Auto Loans Hit All Time High

Earlier in 2017, using the latest 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 sending the revolving credit total back under this "psychological number." At least until today, when the latest consumer credit update from the Fed disclosed that in September, consumer credit rose by $20.8 billion, more than the $17.5 billion expected, of which $14.4 billion was non-revolving, auto and student loans, and $6.4 billion was credit card debt. Total consumer credit rose by 6.6% Y/Y, rising to $3.788 trillion as of Sept. 30. This was the single biggest monthly increase since November 2016.

And while nonrevolving credit reached a fresh record high of $2.782 trillion, revolving - or credit card debt - is now back over a trillion dollars, or $1.006 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 $1.112 trillion for auto loans, and a record $1.486 trillionn 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.

Comments

Pool Shark ParkAveFlasher Tue, 11/07/2017 - 16:47 Permalink

If merchants are dumb enough to pay credit card fees, I'll make sure to have a cash-back credit card.With my Citi Double-Cash Card, I get 2% back (in cash, gift cards, or statement credit) on EVERYTHING I purchase.Pay balance IN FULL every month, never pay finance charges or interest, and get 2% back on EVERYTHING I purchase. My insurance company even lets me pay my premiums (auto, fire, etc.) without any service fees! So I'm getting a 2% discount on just about everything (even my water bill!) Do I have ANY debt whatsover?HELL NO!!!No mortgage either.I let the Banksters pay ME interest!!![If ya can't beat 'em, join 'em!]

In reply to by ParkAveFlasher

SJEqualizer hedgeless_horseman Tue, 11/07/2017 - 19:04 Permalink

No debt.No fee credit cards that pay 1.5-2% cash back.  Charge EVERYTHING...utilities, phone, Internet, trash pickup, etc.Never carry a balance and get paid to use the bank's money.Fuck debit cards...when the account gets compromised it's your money at risk (checks bouncing, etc.)  When credit card gets compromised it's the bank's money and you're not responsible for it.Win.

In reply to by hedgeless_horseman

Decoherence Tue, 11/07/2017 - 15:34 Permalink

Old debts can’t be repaid without ever expanding new debt. New debt can’t be created without the petrodollar. Oil industry is going bankrupt. Looks like we’ve reached peak bullshit as well as peak oil.

two hoots Tue, 11/07/2017 - 15:39 Permalink

There must be a belief that student loans will be forgiven and therefore they load up.   Or borrow the money and attend a school you know is rotten, enjoy the money and hope for refund.   Sure there are many ways, like grants, to milk, no, outright grab money from a government that has no standards and fails miserably at checking and confirming anything.  Much work to clean this up and punish the swindlers.

Sy Kloine Bee Tue, 11/07/2017 - 15:39 Permalink

I feel bad for the young people.  What will happen when reality sinks in and they realize they will never be able to work or borrow their way out of their hole?  Will they roll over and take it, or will they get violent?

To Hell In A H… Tue, 11/07/2017 - 15:41 Permalink

This is the American dream. Debt created by the FED, for the GOY, to gorge on, while the Gentile is pissing themselves laughing, and Trump supports this arse raping by his buddies.

Decoherence I woke up Tue, 11/07/2017 - 16:28 Permalink

Is there any other alternative at this point? Economics is a zero sum game. Hardcore Capitalists suffer extreme cognitive dissonance over this truth, but it doesn’t change the facts. All ISMs are bullshit, including capitalism, unless you’re the one exploiting others with your issuance of debt or capital, then it makes perfect sense. But when you run out of viable energy, the party is over. Then the piece of American pie turns into a shit sandwich for the bottom 99 to take a bite of.

In reply to by I woke up

Ben A Drill Tue, 11/07/2017 - 16:06 Permalink

Why? Taxed to poverty. Some even homeless. Insurance/mortgage/car payment or food. What do I pay this month?

Not talking about me. Just the average joe six pack. Dont have a clue how to make it if you have kids, how to put a roof over your head, feed the family and make your car payment and pay the rent. It's crazy scary out there in the real world.