Revolving Debt Slowed in Q4, Federal Reserve Reports

According to the Federal Reserve G.19 Consumer Credit Report released Tuesday (2-7-23), the balance of consumer credit outstanding grew at a seasonally adjusted annual rate (SAAR) of 6.5% in 2022Q4, down from 6.7% in 2022Q3. In December, consumer credit outstanding increased at a SAAR of 2.9%.

Additional analysis of the Q4 G.19 report provided by the National Association of Home Builders reveals that Revolving debt—which consists primarily of credit card debt—rose at a rate of 12.0%, and the level of nonrevolving debt (excluding real estate) grew at a SAAR of 4.8%.

Total outstanding consumer credit currently stands at $4.78 trillion, an increase of $79 billion over 2022Q3. 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 2021Q4.

With every quarterly G.19 report, the Federal Reserve releases a memo covering student and motor vehicle loans outstanding on a non-seasonally adjusted (NSA) basis. The most recent release shows that the balance of student loads was $1.8 trillion at the end of 2022Q3, while the amount of auto load debt outstanding stood at $1.4 trillion.