Consumer credit expanded in November

January 8, 2026

Consumers took on more debt in November. Consumer credit outstanding rose 1% at a seasonally adjusted annual rate. On a year-over-year basis, consumer credit outstanding moved up at half that pace, up 0.5%.

Revolving debt, made up primarily of credit cards, declined by 1.9%. That reflects the shortened holiday season; it was compressed into December just like last year. We expect to see that credit card demand rose again in December on robust holiday spending.

The Chicago Federal Reserve Bank's Advance Retail Trade Summary (CARTS) projected that retail & food services sales, excluding autos, added only 0.3% for November. That is lower compared to October.

Nonrevolving debt, which includes car loans, student loans and personal loans, increased at an annual rate of 2% in November after gaining 1.2% in October. Auto sales dipped in November compared to a year ago but they remain strong; affluent consumers comprise a growing share of auto buyers.

Student debt continues to compound. This week, the Department of Education started to garnish the wages of some borrowers who are in default. An estimated five million borrowers are currently in default. That number could rise further in the months ahead; transitions into serious delinquency (90+ days of nonpayment) reached the highest level on record in the third quarter of last year.