The appetite for debt among United States consumers continues to be colossal, despite suffering from the economic collapse a few years ago that left millions of households financially paralyzed. With the U.S. economy in the “boom phase” right now, Americans are seeking out greater debt levels to fund their extravagant (unaffordable) lifestyles.
In the month of December, consumers expanded their borrowing with credit cards increasing at the fastest pace in eight months. Consumer borrowing was fueled mostly by automobile loans and student loans, which soared $9 billion, down from November’s exponential $14.4 billion increase. Also, there was a $5.8 billion boost in credit cards.
Overall, consumer borrowing jumped $14.8 billion in December, up from the previous month’s $13.5 billion.
In total, consumer debt in the U.S. is up 6.9 percent from last year and stands at a record $3.31 trillion, according to a report published by the Federal Reserve on Friday. This data does not include mortgages, home equity loans or other real estate type loans – when included the debt level is close to $13 trillion.
Analysts say the recent gains in jobs has given consumers greater confidence in taking on debt. As we reported last week, the unemployment rate rose 0.1 percent to 5.7 percent, despite the immense number of jobs added to the U.S. economy.
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