Consumer Borrowing Sky-Rockets in November
By Paul RizzoPayday Loan Writer
Americans pulled out their credit cards again in November after having locked them away for safe keeping in the prior month, the Federal Reserve announced today.
The Fed said consumer borrowing rose at an annual rate of 6.2 percent in November, the sharpest pace since August, as credit card applications and requests for payday advances took off.
Borrowing rose by $12.3 billion usd in November, bringing the total consumer credit up to $2.39 trillion across the nation, also the largest increase since August.
Economists had expected total consumer borrowing to rise by $6 billion in November. But the increased amount is at least partially due to the popularity of regular and faxless payday loans.
The rise in total consumer debt was widespread, as consumers increased both their credit card debt and took out loans secured by automobiles and other big-ticket items, excluding real estate.
Consumer borrowing for auto loans and other types of so-called non-revolving credit rose at an annual rate of 3 percent in November, an increase of $3.8 billion.
Credit card borrowing, known as revolving credit, rose at an annualised 11.9 percent rate in October. That’s the largest percentage increase since June and the largest dollar increase since May.
The Fed’s measurement of consumer credit does not include mortgages and other loans secured by real estate. But it does take cash loans into account.
