Consumer Borrowing Posts Largest Increase in a Decade
Consumer credit in March posted the biggest gain since November 2001 according to the monthly G19 report released today by the Federal Reserve.
Overall consumer borrowing rose by $21.3 billion to $2.54 trillion. This was the seventh consecutive month of increases in overall borrowing.
The majority of this increase was with non-revolving debt, primarily car and student loans. This accounted for $16.2 billion of the increase. Some analysts believe that student loans are rising at an increased pace since the interest rate on student loans may increase in July.
Revolving debt, made up mostly of credit card debt, posted the first monthly increase in three months. It rose $5.1 billion to $803.6 billion, an annualized rate of 7.8 percent. For the first quarter, however, credit card debt showed a slight 0.1 percent decrease on an annualized basis.