Consumer credit rose to $5 trillion in January, Fed reports

[Pelican Press 0]

This is the hidden content, please

• Sign In
• or
• Sign Up

Consumer credit rose to $5 trillion in January, Fed reports

This is the hidden content, please

• Sign In
• or
• Sign Up

/applications/core/interface/js/spacer.png">

Total outstanding consumer debt stood at $5 trillion as of January, according to the Federal Reserve’s 

This is the hidden content, please

• Sign In
• or
• Sign Up

 released on Friday. That is up slightly from a month earlier but down 0.6% compared to a year ago.

Revolving debt, which mostly includes credit card balances, jumped 8.2% year over year, while nonrevolving debt, such as auto loans and student loans, rose 3%.

“Some small cracks are starting to emerge,” said Ted Rossman, senior industry analyst at Bankrate.

Overall, “consumers are still spending, of course,” Rossman said.

However, “sentiment has been depressed — and has taken another few steps down in recent weeks due to tariff worries,” he added.

More from Personal Finance:
Americans are suffering from ‘sticker shock’
Canada, Mexico tariffs create ‘ripple effects’ on consumer prices
As tariffs ramp up, this investment can protect against inflation

The G.19 report shows “significant-but-not-crazy growth in revolving credit, and moderate growth in nonrevolving and overall credit,” according to Matt Schulz, chief credit analyst at LendingTree.

But economists say Trump’s tariffs on imports from China, Mexico and Canada are bound to raise prices for consumers, which is fueling concern among households. One recent

This is the hidden content, please

• Sign In
• or
• Sign Up

 found that 86% of Americans said trade tensions are likely to hit their wallets and another 22% have also started stockpiling certain items, regardless of whether they can afford it.

In the last year, credit card debt rose to a record $1.21 trillion, with 34% of credit card borrowers saying they expect to take on more debt this year, according to a separate poll of 2,000 adults in February by CreditCards.com.

How to get a handle on credit card debt

Credit cards are also one of the most expensive ways to borrow money. The average credit card currently charges more than 20%, near 

This is the hidden content, please

• Sign In
• or
• Sign Up

“If you have credit card debt — and about half of cardholders do — my best advice is to sign up for a balance transfer card with a lengthy 0% promotion,” Rossman said. Cards offering 12, 15 or even 21 months with no interest on transferred balances are one of the best weapons Americans have in the battle against credit card debt, experts often say.

Working with a reputable nonprofit credit counseling agency is another solid option, Rossman added.

This is the hidden content, please

• Sign In
• or
• Sign Up

This is the hidden content, please

• Sign In
• or
• Sign Up

#Consumer #credit #rose #trillion #January #Fed #reports

This is the hidden content, please

• Sign In
• or
• Sign Up

This is the hidden content, please

• Sign In
• or
• Sign Up