The sharp October contraction in revolving debt was short-lived as consumers returned to more normal credit patterns, piling on more than $5 billion in revolving credit, mostly credit cards, during November. The events of September 11th appear to have been the most significant factor in the dramatic drop in October, while record low interest rates and holiday spending may have been responsible for the rebound in November. According to the monthly figures released by the Federal Reserve yesterday, Americans added $5.4 billion to revolving credit during November, following a $3.7 billion pay down in October. While the rebound reversed a trend that began in July, total revolving credit remains about $6 billion below the record level set in June of this year, when total revolving credit topped $700 billion. According to the Federal Reserve, revolving debt stood at $694.6 billion during November. At the end of November, American consumers were $1.653 trillion in debt, exclusive of home mortgages.
REVOLVING CREDIT HISTORICAL ($billions)
Nov 01 Oct01 Sep01 Aug01 Jul01 Jun01 May01
GRWTH: 9.4% -6.1 0.6 -2.2 -3.7 2.1 4.5
$OWED: $694.6 689.2 692.7 693.5 698.1 700.3 699.0
Apr01 Mar01 Feb01 Jan01 Dec00 Nov00 Oct00
GRWTH: 14.2% 11.9 20.8 11.6 5.0 10.9 4.7
$OWED: $697.6 688.2 681.4 670.3 663.4 660.6 654.8
Source: Federal Reserve; revised figures as of 01/08/02; For complete historical data visit www.carddata.com.