Bloomberg outlines:
U.S. consumer borrowing rose in October to the highest level in two years, propelled by gains in non-revolving debt like auto and student loans.
Credit increased by $7.65 billion to $2.46 trillion, the most since October 2009, Federal Reserve figures showed today in Washington. The advance was in line with the median forecast of economists surveyed by Bloomberg News that projected a $7 billion gain.
While overall consumer credit rose, consumer credit excluding student loans continued to decline as a percent of personal income from 15.74% in September to 15.71% in October. Of note, total consumer credit (revolving and non-revolving) is now below the 50 year average when viewed relative to personal income, with the big caveat that this excludes student loans*, a category that is now more than 3% of personal income (up from less than 0.5% on average the past 50 years).
Source: Federal Reserve / BEA
* this assumes all Federal student loans are student loans.
What is going to happen with all that student loan debt. Ugh.
ReplyDeleteFurther splitting the haves (those able to develerage or relever) and have nots (students w/ loans and limited job prospects).
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