Total Credit Outstanding Declines as Interest Rates Climb
David Logan2023-10-10T14:17:36-05:00By David Logan on October 10, 2023 • According to the Federal Reserve’s latest G.19 Consumer Credit report, total consumer credit outstanding totaled $4.97 trillion (seasonally adjusted annual rate) in August, a decrease of $15.6 billion over the month but $188.8 billion—or 3.9%–higher than August 2022. The monthly decline resulted from a 0.8% drop in nonrevolving credit outstanding that was partially offset by a 1.2% increase in revolving credit. The level of revolving debt—primarily credit card debt—rose $14.7 billion over the month and $122.9 billion over the year (SAAR). Revolving debt outstanding has increased two consecutive months by a total of $24.3 billion (SAAR)—or 1.9%. Revolving and nonrevolving debt accounted for 25.9% and 74.1% of total consumer debt, respectively. Since reaching a 32-year low in April 2021, revolving consumer credit outstanding as a share of the total has increased to a level not seen since July 2019. Credit card interest rates have climbed 61 basis points since May, reaching a record-high of 22.77% in August. The average credit card interest rate has increased 434 basis points–or 23.6%–over the past 12 months. Interest rates for 60-month auto loans issued by commercial banks edged up seven basis points—from 7.81% to 7.88%–in August. Auto loan rates have surged 336 basis points, or 74.3%, since early 2022. Related ‹ Residential Building Wage Growth SlowingTags: credit card debt, household balance sheets, interest rates, nonrevolving credit, nonrevolving debt, revolving credit, revolving debt
