Consumer Borrowing Jumps in December
Demands for auto, student and credit card loans experienced significant increases in December, according to the latest figures from the Federal Reserve.
Consumer credit increased $18.8 billion in December, an annual rate of 7.3%. This was the biggest increase in 10 months. Over $13 billion of this increase came from the category that includes student and auto loans.
Revolving credit, the majority of which is credit card debt, increased at an annual rate of 7% with a jump of $5 billion in December. This was the third largest gain during the recovery and the largest jump since May. Some analysts believe this could be a positive sign for the future of the economy.
Credit card debt is nearly 16% below the high of $1 trillion in July 2008. Credit card borrowing has increased just 1.9% since December 2012.
Consumer borrowing plummeted after the Recession of 2008. Households and banks became more cautious in borrowing and lending, and both have been slow to recover.
This entry was posted in Credit Card News and tagged credit cards , Federal Reserve , recession , student loans , credit card debt , credit card loans , auto loans , consumer borrowing , consumer loans , revolving credit , Great Recession , nonrevolving debt , revolving debt
The information contained within this article was accurate as of February 11, 2014. For up-to-date
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