Home / Business and Economy / US Consumer Debt Surges to Yearly High
US Consumer Debt Surges to Yearly High
7 Feb
Summary
- Total consumer borrowing climbed by $24 billion in December.
- Revolving credit, like credit cards, saw its largest increase in over two years.
- Americans' concerns grow over debt payments and economic outlook.
Total consumer borrowing in the US experienced its most substantial monthly increase in a year during December, rising by $24 billion. This growth was fueled by a notable uptick in both revolving and non-revolving credit categories.
Non-revolving credit, encompassing loans for items like vehicles and education, expanded by $10.2 billion, marking its strongest performance in seven months. Simultaneously, revolving debt, primarily credit card balances, surged by $13.8 billion, representing the largest monthly gain in over two years.
While the rise in credit card debt may be partly attributed to record online holiday shopping, broader economic concerns persist. Americans are increasingly worried about job security and their financial futures, with recent data indicating heightened probabilities of missing debt payments. Income growth has also trailed consumer spending, raising questions about the long-term sustainability of household demand.
