Thursday, February 8, 2018

Wages may be going up slightly for American workers but credit card and student loan debt climbing even higher

While January earnings and job numbers were both well above analyst expectations, they don't really appear to be helping too many Americans as consumers are still using credit to sustain their lifestyles in record fashion.  In fact the amount of credit card and student loan debt increased so much in December that it is back to being an all-time high, and even greater than just before the financial crash of 2008.

The US consumer closed out 2017 with a credit bang. 
While we reported last month that in November US credit card debt had just surpassed the previous all time high hit in July 2008 just before all hell broke loose when Lehman filed for bankruptcy two months later, there was a slight chance that in December this number had declined after the record surge in November credit-funded spending (which was just revised from $28BN to $31BN). 
Well, that did not happen, and while December total consumer credit increased by less than the expected $20BN, it was still an impressive $18.45BN, of which $5.1billion was credit card debt and $13.3 billion non-revolving - or student and auto - loans. 
Meanwhile, non-revolving credit which with the exception of one definition change month, has never gone down, also hit a new all time high of $2.813 trillion, a monthly increase of $13.34 billion. - Zerohedge

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