Consumer Debt Growth Is Accelerating


  • From a year ago, total consumer credit is up 8.1 percent, the fastest pace since November 2011.
  • As of the second quarter, the financial obligations ratio was 14.27 percent, up from 14.24 percent in the prior quarter.
  • Total consumer credit rose again in October on gains in revolving credit and nonrevolving credit.

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Luis Alvarez

By Robert Hughes

Consumer Credit is growing

Total consumer credit outstanding rose by $27.1 billion to $4,729.3 billion in October, a 0.6 percent increase from the prior month. From a year ago, total consumer credit is up 8.1 percent, the fastest pace since November 2011 (see first chart).

Revolving and nonrevolving debt are rising

Household debt service remains low

This article was written by

AIER educates Americans on the value of personal freedom, free enterprise, property rights, limited government and sound money. Our ongoing scientific research demonstrates the importance of these principles in advancing peace, prosperity and human progress. www.aier.orgFounded in 1933, AIER is a donor-based non-profit economic research organization. We represent no fund, concentration of wealth, or other special interests, and no advertising is accepted in our publications. Financial support is provided by tax-deductible contributions, and by the earnings of our wholly owned investment advisory organization, American Investment Services, Inc. (

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