Americans are still making borrowing great again, without any end in sight
Despite interest rates climbing, consumers continue to borrow to fund a wide variety of things. Surprisingly, the one borrowing category that fell was credit cards.
According to Federal Reserve data, consumer borrowing jumped by $10.9 billion in September, down from $22.9 billion in August. This is also below market forecasts of $16.5 billion.
The biggest increases were found in student loans and auto loans. Credit card borrowing declined by $311.6 million.
In total, U.S. household debt sits above $13 trillion.
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Credit card debt is the worst. Banks pay less than 1% on savings and charge on average 24% on credit cards, there should be a law against it. But the politicians are bought off by the bankers. I have paid off $14,000 in CC debt since March 2018. And will have zero CC debt in Nov 2019. The CC debt that I have was added over the last 11 years was a slow process adding on average just $200 in extra spending per month. The only bright spot is with 4 zero interest CCs I have been able to move $8,000 in CC debt to zero interest and it will all be paid off without any additional interest. In the future the only thing that I will ever use credit for is a house or car.