Source: CreditandCollectionsWorld.com and SourceMedia, Inc
Consumer credit outstanding rose at a seasonally adjusted annual rate of 5.9% in August, boosted by an 8.1% increase in borrowing on revolving accounts, consisting primarily of credit cards, according to the Federal Reserve Board’s monthly Consumer Credit survey, released late last week.
Total consumer credit outstanding in August approached $2.47 trillion, rising $12.2 billion, or 0.5%, from July and increasing $102.1 billion, or 4.3%, from nearly $2.37 trillion in August 2006. Revolving credit during August, which includes credit card borrowing, equaled $915.5 billion, up $6.2 billion, or 0.7%, from $909.3 billion in July. August’s revolving debt was $61.0 billion, or 7.1%, above that of August 2006.
Non-revolving credit – comprising closed-end loans for items such as mobile homes, tuition and vacations – totaled $1.554 trillion in August, growing 0.4% from $1.548 trillion in July and 2.7% from $1.513 trillion in August 2006. The seasonally adjusted annual rate of change on non-revolving credit was 4.7% during August.
Auto finance companies reported that the average amount financed for new car loans during August reached $28,722, up $1,632, or 6.0% greater than the average amount financed in July, and up $2,254 or 8.5% from August 2006.