Nonrevolving Debt Fuels June Consumer Credit


The Federal Reserve’s latest G.19 Consumer Credit Report shows trends in consumer credit, excluding loans secured by real estate, through June 2020.

In June, consumer credit increased at a seasonally adjusted annual rate of 2.6% from the previous month, with revolving debt1 decreasing by 2.8% and nonrevolving debt2 increasing by 4.3 percent. Consumer credit totaled $4.1 trillion on a seasonally adjusted basis, with $992 billion in revolving debt and $3.1 trillion in nonrevolving debt. This is an increase of $9 billion from the previous month, with revolving debt decreasing by $2.3 billion and non-revolving credit increasing by $11.3 billion. This month marks a recovery in consumer credit following two consecutive months of decline.

Despite stumbling in April, which correlated strongly with the pandemic-induced rise in unemployment, nonrevolving debt continued climbing in the ensuing months. On the other hand, fluctuations in revolving debt reflect consumers’ uncertainty of the short-term. As shown above, revolving debt is more reactive to macroeconomic changes than nonrevolving debt. In the latest month, non-real estate-related non-revolving debt holdings increased the most at commercial banks in the U.S., on an unadjusted basis.

The G.19 report also released estimates this month for the levels of and flows with respect to student loan and motor vehicle loan debt for the second quarter of 2020. On an unadjusted basis, student loan debt increased by $2.2 billion and motor vehicle loan debt increased by $12.1 billion. Compared to last year, the second quarter flow in student debt was about $3.7 billion lower and motor vehicle loan debt was about the same. As of the second quarter of 2020, student loan and motor vehicle loan debt make up 92% of all non-real estate-related closed-ended credit.


  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. The G.19 Consumer Credit report excludes HELOCS and home equity loans, as they are secured by real estate.
  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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