Consumer Borrowing for Cars, College Sees Biggest Jump in 11 Years

Consumer Borrowing for Cars, College See Biggest Jump in 11 YearsU.S. consumer borrowing – not including mortgages – rose for a fifth straight month in December, with non-revolving credit such as loans for cars and college tuition jumping the most in 11 years.
The $14.6 billion surge in consumer credit followed a revised $15.9 billion increase in November, the Federal Reserve said today.
December’s figure is slightly above what economists had expected, a positive sign that consumers are bolstering the economy and that access to credit is slowly thawing.
Rising home values and an improving jobs market seems to be fueling increased consumer borrowing.
That’s good news for the economic recovery, which is highly dependent on consumer spending.
Non-revolving debt, such as loans for auto purchases and for college expenses, surged $18.2 billion in December, the largest increase in that category since November 2001.
However, credit-card borrowing declined by $3.63 billion.
The Fed’s consumer credit report does not include loans backed by real estate.

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