Americans add debt, but not with credit cards
Economic Report
$16 billion boost tied to non-revolving debt like car, student loans
WASHINGTON (MarketWatch) — U.S. consumers took on plenty of debt in November for auto purchases and student loans, but they didn’t use their credit cards very much in the first month of the holiday season.
Consumer credit rose by a seasonally adjusted $16.1 billion in November, marking the second straight sizable gain, according to the Federal Reserve. In October, consumers racked up a slightly revised $14.0 billion in additional debt.
Most of the increase in November came from non-revolving debt such as auto and student loans. Non-revolving debt jumped $15.2 billion.
Credit-card debt grew by less than $1 billion based on preliminary Fed data, indicating that Americans were cautious consumers in the first month of the holiday season.
Consumer credit rose by a seasonally adjusted $16.1 billion in November, marking the second straight sizable gain, according to the Federal Reserve. In October, consumers racked up a slightly revised $14.0 billion in additional debt.
Most of the increase in November came from non-revolving debt such as auto and student loans. Non-revolving debt jumped $15.2 billion.
Credit-card debt grew by less than $1 billion based on preliminary Fed data, indicating that Americans were cautious consumers in the first month of the holiday season.
Consumers usually add debt when they feel more confident about the health of the economy and their ability to pay off their loans.
The smallish increase in credit-card use might indicate Americans were trying to rebuild their savings. Alternatively, they may have been waiting for additional Christmas-related sales before buying gifts.
At the end of November, consumer credit stood at $2.77 trillion. It’s up 5.2% since the beginning of the year.
The smallish increase in credit-card use might indicate Americans were trying to rebuild their savings. Alternatively, they may have been waiting for additional Christmas-related sales before buying gifts.
At the end of November, consumer credit stood at $2.77 trillion. It’s up 5.2% since the beginning of the year.
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