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

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.

 

Comments

wmbz Thu, 12/07/2017 - 16:13 Permalink

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.  

HRH of Aquitaine 2.0 Consuelo Thu, 12/07/2017 - 17:44 Permalink

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.

In reply to by Consuelo

JohnGaltUk aliens is here Thu, 12/07/2017 - 17:49 Permalink

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.

In reply to by aliens is here

silverer Thu, 12/07/2017 - 16:19 Permalink

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.

VZ58 Thu, 12/07/2017 - 16:33 Permalink

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 Thu, 12/07/2017 - 17:00 Permalink

forgive the student loans
forgive the credit card debt
forgive the national debt
why not?
yippee!!
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%?

CRM114 Thu, 12/07/2017 - 17:02 Permalink

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.