Non-revolving Debt Fuels Consumer Credit in the Latest Quarter


The Federal Reserve’s latest G.19 Consumer Credit Report shows rising trends in consumer credit, excluding loans secured by real estate, through June 2019. As of June 30, 2019, consumer credit totaled $4.1 trillion on a seasonally adjusted basis, with $1.1 trillion in revolving debt1 and $3.0 trillion in nonrevolving debt2. This is an increase of $15 billion from the previous month. In June, consumer credit increased at a seasonally adjusted annual rate of 4 percent. Revolving credit greatly decelerated and was virtually unchanged from the previous month, decreasing by $80 million, while nonrevolving credit increased by $15 billion at an annual rate of 6 percent. Overall, for the second quarter of 2019, consumer credit increased at a seasonally adjusted annual rate of 5 percent.

The chart above shows the trend in the aggregate student debt, a component of nonrevolving credit, on a non-seasonally adjusted basis, as well as the quarterly additions to student dept up through the second quarter of 2019. As of the second quarter of 2019, total student debt stood at $1.6 trillion. Out of this total, $6 billion was added between March and June. Student debt has been steadily increasing since prior to the Great Recession and remains one of the main obstacles to homeownership by younger demographics.


  1. Revolving credit plans are largely composed of credit card debt but also include home equity lines of credit (HELOCs). These may be unsecured or secured by collateral and allow a consumer to borrow up to a prearranged limit and repay the debt in one or more installments.
  2. Nonrevolving credit is closed-end credit extended to consumers that is repaid on a prearranged repayment schedule and may be secured or unsecured.

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