While US consumer credit increased by 5.5%, or $13.74bn during the third quarter of 2013, Americans remain hesitant about taking on new credit card debt, newly released Federal Reserve data revealed.
With consumers accessing more non-revolving credit during September, with figure rising by $15.8bn, at an annual rate of 8%, revolving credit, mostly measuring credit card use, declined by more than $2bn since August, with annual rates dropping by 2.25%, Fed said.
According to Fed, total US consumer credit will reach $3.05trn, the biggest jump observed in three months.
The report also showed consumers continuing to use credit alternatives such as cash and debit.
The Fed’s measure of consumer debt included instalment loans such as auto loans, plus student loans and revolving debt. Revolving debt’s share of all short-term consumer debt, at about 28%, was at its lowest level since 1990.