With the total outstanding revolving US consumer credit down 0.3% in January from last year to an adjusted $856B from $846B, any positive momentum achieved in 2013 is a fading memory, and its bleeding into 2014. Continuing to grow, January revolving credit outstanding is still not as high as the 2008 figure of $1trillion and is much better than the 2009 and 2010 figures, down by 8.8% and 7.6%, respectively. With total credit flow actually down 2.6% from the year ago figures, according to the Federal Reserve, revolving US consumer credit is also down on the November figure of $853.4 billion and $856.5 billion in December.
With outstanding debt having dropped 9.8% from $957.5 billion posted in 2008 to only $856 billion, credit card interest rates have trended downward since 2007 from 13.3% to 12.3% to encourage more borrowing. With this, revolving credit increased at an annual rate of 5%. When outstanding debt levels in both revolving and non-revolving debt (consumer loans) stabilize, so too will the economy. Meanwhile, following trending monthly increases in increased revolving credit use, consumer credit showed its first indication of waning over the same period.