Growth of Revolving Debt Slows, Auto Loan Rates Spike in Q4 2022

2023-02-08T12:17:05-06:00

By David Logan on February 8, 2023 • The balance of consumer credit outstanding grew 6.5% in the fourth quarter of 2022 (seasonal adjusted annual rate) after climbing 6.7% (SAAR) in the third quarter according to the Federal Reserve’s latest G.19 Consumer Credit report.  Revolving debt—which consists primarily of credit card debt—increased at a 12.0% rate, as the level of nonrevolving debt (excluding real estate) grew 4.8% (SAAR). Total outstanding consumer credit currently stands at $4.78 trillion, an increase of $79 billion over the third quarter. Nonrevolving credit outstanding increased $191 billion, year-over-year, while the level of revolving debt rose $154 billion. Revolving debt accounted for 25.0% of total consumer debt outstanding, up from 23.5% in Q4 2021. The average interest rate of a 60-month auto loan increased by more than a full percentage point over the quarter, from 5.50% to 6.55%. Over the past three quarters, the rate has climbed 2.03 ppts and is at its highest level since 2009. With every quarterly G.19 report, the Federal Reserve releases a memo item covering student and motor vehicle loans’ outstanding levels on a non-seasonally adjusted (NSA) basis. The most recent release shows that the balance of student loans was $1.8 trillion at the end of the third quarter while the amount of auto loan debt outstanding stood at $1.4 trillion. Together, these loans made up 88.6% of nonrevolving credit balances (NSA)—1.3 percentage points lower than the share in Q4 2021 and 4.4 ppts below the series high reached in 2010. Related ‹ Mortgage Activity Increases after Dip in RatesTags: auto loans, consumer credit, consumer debt, credit card debt, g.19, interest rates, nonrevolving debt, revolving debt, student loan debt, student loans

Growth of Revolving Debt Slows, Auto Loan Rates Spike in Q4 20222023-02-08T12:17:05-06:00

Revolving Debt Climbs as Credit Card Interest Rates Set New Records

2023-01-10T13:21:20-06:00

By David Logan on January 10, 2023 • The balance of consumer credit outstanding grew 7.1% in November 2022 (seasonal adjusted annual rate) after climbing 7.4% (SAAR) in October according to the Federal Reserve’s latest G.19 Consumer Credit report.  Revolving debt—which consists primarily of credit card debt—increased at a 16.9% rate, more than four times the growth of nonrevolving debt (excluding real estate) which grew 3.9% (SAAR). Credit card interest rates climbed 1.97 percentage points—or 197 basis points—to 20.4% between August and November 2022, following a 178 basis point increase between May and August (credit card terms are only released in February, May, August, and November). Prior to August 2022, the largest three-month increase in the series—which dates back to 1994—was a 98 basis point increase in May 1995. Total consumer credit currently stands at $4.76 trillion, an increase of $28 billion over the month and $349 billion, year-over-year. Nonevolving credit outstanding increased $11.5 billion while the level of revolving debt rose $16.5 billion over the month. Revolving and nonrevolving debt accounted for 25.0% and 75.0% of total consumer debt, respectively.  Between November 2021 and November 2022, revolving consumer credit outstanding as a share of the total increased 1.6 percentage points after reaching its most recent low of 22.9% in May 2021. Related ‹ How Many Households Are Priced Out By Higher Mortgage Rates in 2022?Tags: auto loans, consumer credit, credit card debt, credit cards, g.19, household balance sheets, household debt, nonrevolving debt, revolving debt, student loan debt

Revolving Debt Climbs as Credit Card Interest Rates Set New Records2023-01-10T13:21:20-06:00

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