Americans largely stopped adding debt to household balance sheets in December, according to data released Wednesday by the Federal Reserve.
Total consumer credit increased by a seasonally adjusted $1.5 billion in December.
Economists had expected consumer debt to rise tenfold.
Consumer credit increased by $23.4 billion in November.
This was the lowest growth since August last year, when consumer credit levels actually fell. But that decline was driven by the Biden administration’s student loan forgiveness plan, which a court found illegal. Without the student loan program, consumer credit would have increased in August, as credit card debt jumped the most since November last year.
Revolving credit, mostly credit cards, edged up by a seasonally adjusted 1% in December. A month ago, the growth rate was 16.6%.
Before seasonal adjustment, revolving credit increased $16.2 billion, down from November’s $39.8 billion increase from the previous month.
Non-revolving credit, mainly auto loans and student loans, rose only 0.2% from the previous month’s 1.8% rise.
The Fed’s consumer debt figures do not include mortgages.
