See Why Consumer Debt Unexpectedly Increased in April
The Federal Reserve released its April Credit Report today. According to the report, U.S. consumers increased their debt by a seasonally adjusted 3.1% annual rate in April, driven up more than was expected by an increase in non-revolving debt.
Total consumer debt increased more than Wall Street economists expected, increasing by $6.25 billion to $2.43 trillion. Though consumer credit debt was below expected with a $4.82 billion increase as opposed to estimates of around $6.0 billion, non-revolving debt increased by $7.20 billion in April, significantly higher than March’s figure of $4.78 billion.
To put it more simply, all this data means that non-revolving debt such as student loans, car loans, etc. is up 5.3% while credit card debt (revolving) is down 1.4%. The revolving debt figures are an improvement over March when debt increased 0.1%, but non-revolving debt has gotten worse, coming in at a grand total of $1.64 trillion while revolving debt only makes up $790.1 billion of the overall $2.43 trillion of consumer debt in the U.S. That is, roughly two-thirds of consumer debt is comprised of the non-revolving variety.