{"id":1545918,"date":"2025-07-08T19:54:56","date_gmt":"2025-07-08T23:54:56","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1545918"},"modified":"2025-07-08T19:54:56","modified_gmt":"2025-07-08T23:54:56","slug":"credit-card-debt-unexpectedly-plunges-as-student-loans-soar-consumer-credit-update","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/credit-card-debt-unexpectedly-plunges-as-student-loans-soar-consumer-credit-update\/1545918\/","title":{"rendered":"Credit Card Debt Unexpectedly Plunges As Student Loans Soar: Consumer Credit Update"},"content":{"rendered":"

Credit Card Debt Unexpectedly Plunges As Student Loans Soar: Consumer Credit Update<\/span><\/p>\n

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One month after consumer credit unexpectedly jumped the most in 2025, when it spiked by $17.9 billion (since revised to $16.9 billion) in the month of April, moments ago the Fed released its monthly consumer credit report which showed that the yoyo action in credit-fueled consumer spending continued, and in May while total consumer credit rose a modest $5.1 billion, half of the $10.55 billion expected, it was all on the back of non-revolving credit (i.e., student and car loans). That’s because revolving (or credit card) debt slumped by $3.5 billion, the first drop in 2025, and the second biggest monthly decline since covid.<\/strong><\/p>\n

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Starting with nonrevolving credit, the monthly change remained sturdy, with the total rising to a new record high of $3.749 trillion…<\/p>\n

<\/a><\/p>\n

… although the composition is curious, with auto loans actually shrinking in Q1 by $8.5 billion to $1.555 trillion, while student loans – which for years had flatlined thanks to BIden’s repayment moratorium –\u00a0soared by $27 billion in Q1 to a new record high just over $1.8 trillion, their biggest quarterly increase since the $34.1 billion spent on stuff lessons during the covid pandemic.<\/strong><\/p>\n

<\/a><\/p>\n

But, as noted above, it was revolving credit that was the standout in May and as shown below, credit card debt unexpectedly shrank by $3.5 billion to just under $1.299 trillion.\u00a0<\/p>\n

<\/a><\/p>\n

Such sudden drops in credit card debt are always concerning and indicative of either a sharp reversal looming in the economy, or households who are stuffed with debt and no longer want – or can get – more credit for purchases.\u00a0<\/p>\n

We expect to find out which is the right answer in the coming months.\u00a0<\/p>\n

\u00a0<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nTue, 07\/08\/2025 – 15:54<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/credit-card-debt-unexpectedly-plunges-student-loans-soar<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Credit Card Debt Unexpectedly Plunges As Student Loans Soar: Consumer Credit Update One month after consumer credit unexpectedly jumped the most in 2025, when it…<\/p>\n","protected":false},"author":0,"featured_media":1545919,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-1545918","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-6uaa","jetpack_featured_media_url":"https:\/\/bugaluu.com\/news\/wp-content\/uploads\/sites\/3\/2025\/07\/consumer20credit20may20202520total-daCmPW.jpg","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1545918","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1545918"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1545918\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1545919"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1545918"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1545918"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1545918"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}