US Total Consumer Credit Outstanding Increases in November

The Federal Reserve on Monday (1-8-24) released its latest G.19 Consumer Credit report. According to the report, with additional analysis provided by the National Association of Home Builders (NAHB), in November total consumer credit outstanding reached a seasonally adjust annual rate (SAAR) of $5.00 trillion for the first time. This represents a 5.7% month-over-month increase.

The Fed says the monthly increase resulted from a 17.7% jump in revolving credit and 1.5% increase in nonrevolving credit.

The level of revolving debt—predominantly credit card debt—rose $19.1 billion over the month. Both the dollar amount as well as the percentage increase were the largest since March 2022 and the second-largest increase since April 1998.

Revolving debt accounted for 26.2% of total consumer debt, while nonrevolving debt accounted for 73.8% of total consumer debt. Although it reached a 32-year low in April 2021, revolving consumer credit as a share of the total has slowly risen to its highest level since December 2014.

Every three months, the G.19 report includes average interest rates on credit card plans and new car loans.

• The average interest rate assessed on credit cards rose 0.3% to 21.5% between August and November—the highest rate in series history.
• Auto interest rates continued to climb as well, with the rate for a 60-month new car loan increasing to 8.15% in November—also the highest reading on record. The rate has surged 3.63 ppts, or roughly 80%, since the Federal Reserve began the current rate hike cycle in 2022Q1.