Consumer credit surged higher in October, making its strongest annualized monthly gain in two years.
But that $3.4 billion annualized rise has nothing to do with consumers taking on new credit card debt (shown in revolving credit).
Instead, it’s a product of two other parts of the consumer credit system: auto loans and, more importantly, student loans.
The student loan surge is likely the product of Americans heading back to school in droves in an attempt to reeducate themselves for the current work environment (and rising prices). While that education may be a good thing, the expansion of credit outlays by the U.S. government, which is heavily involved in the student debt market, may be worrying.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.