Consumer Debt Up $14.6 Billion in December.
Consumer debt increased in December by $14.6 billion to $2.778.2 trillion--an annual rate of 6.25% and up 6.5% for the fourth quarter. Overall borrowing rose for the fifth consecutive month, with non-revolving credit increasing the most in 11 years, said the Federal Reserve's Consumer Credit report.
At credit unions, members borrowed $243.9 billion during the month, a $1.3 billion increase over November's $242.6 billion and better than the $223 billion borrowed a year earlier, according to the Fed's report.
Economists polled by Reuters had forecast a $14.59 billion increase in debt (FoxBusinessFeb. 7), while economists polled by Bloomberg called for a $14 billion increase (Bloomberg.com Feb. 7).
Leading the overall debt increase was a 9.5% annualized increase in nonrevolving credit--such as auto loans and student loans. Nonrevolving credit for December was $1.928.4 trillion, compared with $1,910.2 trillion in November and $1,780.1 trillion at year-end 2011.
Nonrevolving debt at credit unions for December totaled $205 billion, up $2.3 billion from November and up $19.9 billion from a year earlier. In November nonrevolving debt totaled $202.7 billion; in December 2011, it totaled $185.1 billion.
Consumers' credit card or revolving debt declined $3.6 billion in December to $849.8 billion, compared with November's $853.4 billion. A year earlier, revolving debt totaled $847.3 billion, said the Fed report.
At credit unions, revolving debt totaled $38.9 billion in December, a drop of $1 billion since November but higher than the $37.9 billion loaned in fourth quarter of 2011.
The Fed's credit statistics do not include real-estate related loans such as mortgages or home equity lines of credit.
For the full report, use this link.