September 22, 2021
Consumer Credit +7.5%, Revolving Credit +11.5%, Non-Revolving +6.25% YoY
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Consumer Credit +7.5%, Revolving Credit +11.5%, Non-Revolving +6.25% YoY

Year-over-year expansion of consumer credit continues unabated. It's the only way people can "afford" to buy things.
Author:
Year-over-year expansion of consumer credit continues unabated. It's the only way people can "afford" to buy things.

The Fed's Consumer Credit Report for May shines a bright spotlight on a huge problem.

In May, consumer credit increased at a seasonally adjusted annual rate of 7-1/2 percent. Revolving credit increased at an annual rate of 11-1/2 percent, while non-revolving credit increased at an annual rate of 6-1/4 percent.

To keep consumption up, consumers must borrow more and more. And rates keep going up.

New Auto Loan Rates

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​What can possibly go wrong here?

Mike "Mish" Shedlock

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Stock Ownership Rate Plunges as Credit Card Debt Soars

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"Ultra-FICO" to Boost Credit Scores Giving Millions More Access to Credit

Just in the nick of time not: Fair Isaac is launching a new type of credit score that will give millions more credit.

Consumer Credit Hits New Record With Jumps in Revolving and Non-Revolving Debt

Consumer Spending Projections

Every month the NY Fed surveys consumers as to what they will spend in the upcoming year. The Downtrend is still intact.

Debt Deflation Setup: Credit Card Defaults and Subprime Auto Delinquencies Rise

Serious mortgage delinquencies are leveling off and remain one recession away from a serious upswing. Credit card and auto loan delinquencies are already on the rise.

Car Dealers Make More Profit On Loans Than Selling Cars

A third of auto loans in 2019 had a term period over six years. People cannot afford the cars they are buying.