February 10, 2014

Total consumer credit up 7.3% in December

Feb. 11, 2014 – Total consumer credit grew 7.3 percent in December as consumers increased credit-card use during the holiday season, according to NAFCU Senior Economist Curt Long.

Credit unions saw consumer credit grow 0.7 percent in December, Long noted in a NAFCU Macro Data Flash report analyzing data from the Federal Reserve.

Credit unions' share of the total consumer credit market was 8.6 percent in December, while banks had 41.1 percent and financial companies had 22.9 percent of the market.

Total consumer credit increased by 4.8 percent in November and 7 percent in October.

Non-revolving credit, which is mostly motor vehicle and education loans, increased at an annual rate of 7.4 percent, while revolving credit, which is primarily credit cards, increased 7 percent in December.

"Non-revolving credit remained solid as consumers took advantage of low-interest rates to purchase vehicles and as young adults pursued higher education," Long said. "Non-revolving credit is expected to continue to drive overall consumer credit growth."