US Consumer Credit Rises $181 billion in July, Credit Card and Nonrevolving Debt Hit Records
US consumer credit increased by $181 billion in July, driven mainly by nonrevolving debt. Revolving credit, or credit card debt, rose $2.8 billion to a record $1.357 trillion, while nonrevolving credit, including student and auto loans, climbed $15.3 billion to $5.186 trillion, also a record. The average interest rate on interest-bearing credit card accounts reached 22.15%.
Credit growth was primarily driven by nonrevolving credit.
Revolving credit, or credit card debt, increased by $2.8 billion in July to a record $1.357 trillion. Nonrevolving credit, which includes student loans and auto loans, rose by $15.3 billion, the largest monthly increase in over three years, bringing the total to $5.186 trillion, also a historic high.
Auto loans have remained roughly flat since late 2023, holding at about $1.6 trillion, reaching a record $1.571 trillion at the end of June. Student loans, after a slight decline in late 2023, have climbed again to historic highs, though they dipped by $4.5 billion in June. Additionally, the average interest rate on interest-bearing credit card accounts rose to 22.15%, a level last seen three years ago when the federal funds rate was nearly 2 percentage points higher.