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U.S. Consumer Borrowing Surges By Record $40.8 Billion

  • Writer: By The Financial District
    By The Financial District
  • Feb 11
  • 1 min read

U.S. consumer debt soared in December by the largest amount on record, driven by significant increases in credit card balances and non-revolving credit, Vincent Golle and Alex Tanzi reported for Bloomberg News.


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Outstanding credit card and other revolving debt rose by $22.9 billion in December, more than offsetting the prior month’s decline.


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Total consumer credit jumped by $40.8 billion after a revised $5.4 billion decline in November, according to Federal Reserve data released. The figure, which is not adjusted for inflation, exceeded all estimates in a Bloomberg survey of economists.


Outstanding credit card and other revolving debt rose by $22.9 billion in December, more than offsetting the prior month’s decline.


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Meanwhile, non-revolving credit—such as loans for vehicle purchases and education—climbed by $18 billion, marking the largest increase in two years.


Auto sales surged at the end of 2024, reaching their fastest pace since May 2021, according to data from Ward’s Automotive Group. For the full year, total consumer credit outstanding increased by 2.4%, mirroring the previous year’s growth.


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While strong job growth continues to fuel consumer spending, persistently high prices and elevated borrowing costs are straining household finances.


The average interest rate on credit card accounts with assessed interest stood at 22.8% as of November, near the highest level recorded in Federal Reserve data dating back to 1995.



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