According to the Federal Reserve, US consumers’ borrowing for cars and school attending increased November, but remained cautious about using the credit cards.
Tuesday, January 8th, the Federal Reserve said that US consumers boosted their borrowing in November by $16 billion reaching a seasonably adjusted record of $2.77 trillion. Auto and student loan borrowing was up $15.2 billion, compared with $817 million for the category which measures credit cars debt. One can easily observe the sharp difference between borrowing gains, which illustrates a trend which started after the recession. In 2009 American citizens had $1.03 trillion in credit card debt, which by November 2012 decreased with 16.5%.
On the other hand, student and auto loan debts increased dramatically, with 22.8% more than in July 2008. This happened because many people who had lost their jobs have chosen to return to school to get training for new careers. The November data also shows that gains in auto sales have increased 13.4% last year surpassing 14 million vehicles for the first time in 5 years, mainly due to the Americans need to replace the vehicles destroyed by Hurricane Sandy.