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IPFS News Link • Business/ Commerce

US Consumer Credit Hits All Time High As Credit Card Usage Soars

• https://www.zerohedge.com, By Tyler Durden

After a surprising slump in the use of revolving debt in September, when US consumers unexpectedly paid down a total of $310 million on their credit cards, moments ago, the Fed reported that in October, consumer credit posted a huge rebound, rising by $25.4 billion, above the $15.0 billion expected, the highest one month jump since last November. The surge in borrowing in October brought the total to $3.963 trillion, a 7.7% annualized increase from a year ago, and a new all time high, largely on the back of a newfound love with credit cards.

After a one-month dormancy in using credit cards, American consumers returned to doing what they do best - spending money they don't have - with revolving credit jumping by $9.2 billion, the highest monthly increase since last November, and one of the highest monthly increases on record. The monthly increase brought the total to a new all time high of $1.037 trillion.

At the same time, growth in nonrevolving credit, i.e. student and auto loans, was stable and in line with recent months, increasing by $16.2 billion, and also bringing the nonrevolving total to a new all time high of $2.926 trillion.


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