Fewer members, consumers used credit in December

WASHINGTON (2/9/10)--Consumers overall--credit union members included--borrowed less in December, according to Federal Reserve's consumer credit report released Friday.

Consumers borrowed nearly $2.5 trillion--an 0.8% or $1.8 billion drop from November, seasonally adjusted, said the Fed. December's total was the 11th consecutive month that consumer credit had declined, as consumers reduced debt to weather the recession (Business Week Feb. 5.)

For fourth quarter 2009, consumer credit dropped at an annual rate of 4.75%, while revolving credit decreased 13% and nonrevolving credit was unchanged.

U.S. revolving credit totaled $866 trillion, down 11.7% or $8.5 billion, while non-revolving credit totaled nearly $1.6 trillion--an increase of 5.2% or $6.8 billion. The Fed attributed the increase in non-revolving credit to car sales. In December, nearly $30.6 trillion in new-cars were financed, up $92 billion from November.

Credit union members borrowed $236.4 billion in December from their credit unions. That is down slightly from $237 billion in November. The Fed's credit union statistics are not seasonally adjusted.

Revolving credit at credit unions totaled $35.5 billion in December, an increase over $34.6 billion in November while credit unions accounted for $201 billion in nonrevolving credit in December, compared with $202.3 billion in November.

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