Americans are borrowing again. Consumer credit rose at a 3.8% annual rate in February. According to the Federal Reserve “non-revolving” consumer credit increased at a 7.7% annual pace while “revolving” credit dropped at a 4.1% rate.
Translation: Student loan borrowing is up sharply and credit card borrowing is down (for the second month in a row.) If you look at the chart the rise in consumer borrowing is almost all student loans, with some credit cards thrown in around the holiday. Forget the lure of the mall. These days people are borrowing to learn. Let’s hope the debt pays off.
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.
