Revolving Debt Slowed in Q4, Federal Reserve Reports
Growth of Revolving Debt Slows, Auto Loan Rates Spike in Q4 2022
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.
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