Consumer Credit Continues Growth in January

Consumer credit increased at a seasonally adjusted annual rate of 5 percent in January. Total outstanding credit increased $17.0 billion during the month to $4.034 trillion.

Revolving credit, largely a reflection of credit card debt, increased at an annual rate of 3.0 percent to $1.06 trillion, following a 1.2 percent increase in December. Non-revolving credit rose at a 6.0 percent annual rate, or $14.5 billion. Total non-revolving credit is now $2.98 trillion.

Federal government holdings of student loans continue to be the largest portion of non-revolving credit, comprising approximately 42.1 percent of outstanding credit. Depository institutions and finance companies are secondary and tertiary holders, with 24.6 percent and 17.1 percent, respectively, of outstanding non-revolving credit.

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Hugo Dante

Hugo Dante is an economist in Washington, D.C. He was previously an economic research specialist at ABA. In addition to the ABA Banking Journal, his writing has appeared in The Hill, The National Interest and Townhall. Views expressed here are his own.