There appears to be a major discrepancy between BofA’s in house debit/credit card data, which showed a remarkable increase in spending at the end of the year (despite covid).
And the Fed’s own consumer credit data aggregation, because according to the latest Consumer Credit (G.19) report, in December revolving debt, i.e., credit card debt, shrank for a third consecutive month declining by $$3BM following a $653MM drop in November and a $5.5 billion drop in October.
This means that in 2020, US consumers have paid down a record $118.3Bn in credit card debt, a staggering amount for an economy that runs on credit.
The flip side, however, is that as revolving credit dropped, non-revolving credit rose, and in November US consumers increased their student and auto loans – the two largest component of this category – by $12.8 billion.
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