Please ensure Javascript is enabled for purposes of website accessibility

Consumer Credit Expands 7.3% for December

By Justin Loiseau – Feb 7, 2014 at 9:58PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Student loans, car payments, and credit cards are on the rise.

Total consumer credit increased at an annual rate of 7.3% for December, to hit $3.106 trillion, according to a Federal Reserve Consumer Credit report (link opens a PDF) released today. 

US Total Consumer Credit Outstanding Chart

US Total Consumer Credit Outstanding data by YCharts 

After advancing at a seasonally adjusted annual rate of 4.8% for November, this month's consumer credit pushed ahead on a sizable $5 billion increase in revolving credit. In absolute terms, analysts had expected an overall $12 billion rise, $6.8 billion short of actual expansion. 

Revolving credit's (no fixed number of payments, e.g., credit cards) rise was the largest since December, and the third largest of the economic recovery.

Non-revolving credit (fixed installments, e.g., car payments) also pushed ahead, up $13.7 billion. At $2.244 trillion, non-revolving credit significantly outweighs revolving credit's $862 billion outstanding. According to The Wall Street Journal, this credit type's increase is due largely to the government's continued purchase of student loans. However, WSJ also notes that car payments indicate a "solid pace" for car sales.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.