Auto, Student Lending Each Rise More than 10%: Equifax

Print
Email
Reprints
Comment
Twitter
LinkedIn
Facebook
Google+

Student and auto lending surged in the 12-month period ended in July, according to an Equifax report released Thursday.

The total balance on federal and private student loans increased to $884.2 billion in July 2013, up 11.3% from a year earlier, according to the Atlanta credit bureau's National Consumer Credit Trends Report.

However, Americans also took out fewer student loans in the first half of the year. The total number of loans originated between January and May fell 9.3%, to 4.2 million.

Auto loans rose 10.9%, to $826.8 billion in July from a year earlier.

Meanwhile, bank credit card balances rose for the first time in five years to $536.6 billion, but the increase was a scant 0.6%. New credit opened between January and May rose 6%, to $77.7 billion—the highest level since 2008.

"In all other segments, consumers are reducing their debt burdens," Equifax Chief Economist Amy Crews Cutts said in a press release. Total balances on first mortgages, home-equity installments and home-equity revolving all fell. Severely delinquent balances for each loan type were at five-year lows.

While foreclosures and bankruptcies contributed to some of the debt reduction, Cutts said that payoffs primarily drove the decrease.

"We expect mortgage balances to begin rising again over the next several months as new home purchase loans overtake foreclosures and payoffs," she said.

JOIN THE DISCUSSION

SEE MORE IN

RELATED TAGS

10 Cool Perks from American Banker's 2014 Best Banks to Work For
These companies, featured on American Banker's Best Banks to Work For list, go beyond salaries and health benefits to make their employees feel valued at the office.

(Image: iStock)

Comments (0)

Be the first to comment on this post using the section below.

Add Your Comments:
Not Registered?
You must be registered to post a comment. Click here to register.
Already registered? Log in here
Please note you must now log in with your email address and password.
Already a subscriber? Log in here
Please note you must now log in with your email address and password.