January 10,2007
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Credit Debt Soars
The reports on consumer revolving credit for the month of November 2006 were just published, and show a significant increase over the prior month. Of course, November is always a month likely to show increases in credit spending, as consumers begin their Christmas shopping. The credit rise between October and November (+$8 billion) is the latest of a three-month increase: +4.2% in October, and +4.3% in September. An additional rise in December seems more than likely, reflecting the busy retail shopping season.
Per the Federal Reserve's estimate, total revolving credit grew to $872.6 billion by November's end. Approximately nine-tenths of that amount reflects bank credit card debt. The November report reflects that Americans have built up some $2,389.7 billion in debt, which does no include home mortgages