WASHINGTON—For the first time in history, consumer credit has risen above $4 trillion.
According to the latest Federal Reserve data, revolving credit, largely credit cards, rose 2% in December after increasing by 5.6% in November and 11.7% in October.
Nonrevolving credit, such as auto and student loans, rose 6% in December, noted MarketWatch in its analysis.
For the year, credit card debt was up at a 2.75% pace while nonrevolving credit was up at a 5.5% pace. The data does not include mortgage loans.
“With low unemployment and steady income growth, consumers have been tapping into credit lines, economists said. The Fed reported earlier that banks are starting to tighten standards on credit cards,” MarketWatch said.