Consumer Credit Growth Slows in Q1

According to the latest Federal Reserve G.19 Consumer Credit Report, with additional analysis provided by the National Association of Home Builders (NAHB), total outstanding US debt stood at $5.05 trillion in Q1, increasing at an annualized rate of 1.86% (seasonally adjusted).

From 2023Q1 to 2024Q1, the total increased by 2.09%. This is lower than both the 6.67% year-over-year increase from 2022Q1 to 2023Q1 and the 6.51% year-over-year increase from 2021Q1 to 2022Q1.

Of the total outstanding US debt in Q1, the nonrevolving share is 73.47%, with revolving at 26.53%. Nonrevolving debt, primarily made up of student and auto loans, stands at $3.71 trillion (seasonally adjusted) for Q1. Revolving debt, which is primarily made up by credit card debt, stands at $1.34 trillion.

Both nonrevolving and revolving debt have slowed since households’ pandemic-era savings have dwindled, NAHB said. In terms of year-over-year growth, both nonrevolving and revolving debt peaked in 2022Q4 at 15.10% and 5.34%, respectively. In Q1, the year-over-year growth rate for nonrevolving debt decreased to 7.93%, with revolving debt falling to 0.13%. Both experienced their fifth consecutive quarterly decline in year-over-year growth.­

Breaking down the components of nonrevolving debt, student loans account for 47.24%, and auto loans make up 41.88% (the G.19 report excludes real estate loans). The collective other loans make up the remaining 10.87% of nonrevolving debt.