Consumer Debt in U.S. Surges by a Record $40 Billion
(Bloomberg) -- U.S. consumer borrowing surged in November by the most on record, reflecting outsize increases in credit-card balances and non-revolving loans.
Total credit jumped $40 billion from the prior month after a revised $16 billion gain in October, Federal Reserve figures showed Friday. On an annualized basis, borrowing increased 11%. The November gain exceeded all estimates in a Bloomberg survey which had a median projection of $20 billion.
Revolving credit outstanding, which includes credit cards, climbed $19.8 billion -- the largest increase on record. Non-revolving credit, which includes auto and school loans, rose $20.2 billion, the largest gain in six months.
The figures suggests Americans’ are starting to rely more on credit as savings built up on the back of government pandemic-relief funding dries up. Bloomberg Economics estimates that households earning less than $90,000 a year will have exhausted their financial cushions by February.
©2022 Bloomberg L.P.