Consumer Credit Jumps in October
U.S. consumers took on more debt in October, according to data the Federal Reserve released on December 7.
The total amount of consumer credit outstanding in the United States grew a seasonally adjusted $14.2 billion, or 6.2 percent annually. The increase was fueled by auto and student loans. The Fed's tally of consumer credit outstanding includes most short- and medium-term consumer loans, excluding mortgages and other loans backed by real estate.
Nonrevolving credit, which is largely comprised of auto and educational loans, grew $10.7 billion, or 6.9 percent. Nonrevolving credit is closed-end credit that is repaid on a prearranged payment schedule.
Consumers also broke out their credit cards more often in October. Revolving credit outstanding—the majority of which is credit card loans—grew $3.4 billion, or 4.7 percent, after declining $2.2 billion in September.
December 19, 2012