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US Consumers Increased January Borrowing by $11.6 Billion

Published

11 years ago

March 7, 2015

In this Oct. 28, 2014 file photo, shoppers check out at the Century 21 Department Store in Philadelphia. The Federal Reserve releases consumer credit data for January on Friday, March 6, 2015. (AP Photo/Matt Rourke, File)

MARTIN CRUTSINGER, AP Economics Writer

WASHINGTON (AP) — Consumers increased their borrowing in January at the slowest pace in more than a year with borrowing on credit cards actually declining for the second time in the last three months.

The Federal Reserve reported Friday that consumer borrowing expanded $11.6 billion in January following a $17.9 billion gain in December. It was the smallest monthly increase since borrowing rose by $8.3 billion in November 2013.

Even though the January increase was more modest than the gains over the past year, it still pushed total borrowing to a fresh record of $3.33 trillion, an increase of 6.9 percent over the past year.

Borrowing in the category that includes credit cards actually declined by $1.16 billion in January following a $6.2 billion increase in December and a decrease of $537 million in November.

Borrowing in the category that covers auto loans and student loans rose $12.7 billion in January after a gain of $11.7 billion in December.

During the past year, borrowing in the category of auto and student loans has risen 8.3 percent while borrowing in the credit card category has risen a much slower 3.2 percent.

The auto and student loan category has been growing faster than credit card debt since the Great Recession of 2007-2009. That reflects in part the fact that many workers who lost jobs during the downturn decided to take out loans to go back to school and some students opted to stay in school longer because jobs were scarce.

The slowdown in credit card use could reflect greater caution among consumers about taking on debt to finance consumer spending. But economists are hoping that with job growth strengthening so much over the past year, consumers may step up their use of credit cards to finance purchases. That would give a boost to consumer spending and the overall economy.

The government said in a separate report Friday that U.S. employers added 295,000 jobs in February, the 12th straight monthly gain above 200,000.

The Fed’s monthly report on consumer credit does not cover mortgages, home equity loans or other types of loans secured by real estate.

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Financial Wellness and Mental Health: Managing Money Stress in College 

While everyone’s financial situation is unique, several common sources of stress have the potential to strain your financial health. These include financial and economic uncertainty, existing debts, unexpected expenses, and mental or physical health changes. Financial stress may differ from situation to situation, but understanding the factors contributing to yours may help you begin to craft a plan for your unique circumstances.

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March 17, 2026

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As a college student, managing financial responsibilities can be stressful.

If you’ve found yourself staying up late thinking about your finances or just feeling anxious overall about your financial future, you’re not alone. In one survey, 78% of college students who reported financial stress had negative impacts on their mental health, and 59% considered dropping out. While finances can impact overall stress, taking steps to manage your finances can support your mental, emotional and physical well-being.

When it comes to money, the sources of stress may look different for each student, but identifying the underlying causes and setting goals accordingly may help you feel more confident about your financial future.

Consider these strategies to help improve your financial wellness and reduce stress.

Understand what causes financial stress

2. Determine your financial priorities

Start by reflecting on your financial priorities. For students this often includes paying for school or paying off student loans, studying abroad, saving for spring break, building an emergency fund, paying down credit card debt or buying a car. Name the milestones that are most important to you, and plan accordingly.

3. Create a plan and stick to it

While setting actionable goals starts you on the journey to better financial health, it’s essential to craft a plan to follow through. Identifying and committing to a savings plan may give you a greater sense of control over your finances, which may help reduce your stress. Creating and sticking to a budget allows you to better track where your money is going so you may spend less and save more.

4. Pay down debt

Many students have some form of debt and want to make progress toward reducing their debt obligations. One option is the debt avalanche method, which focuses on paying off your debt with the highest interest rate first, then moving on to the debt with the next-highest interest rate. Another is the debt snowball method, which builds momentum by paying off your smallest debt balance, and then working your way up to the largest amounts.

5. Build your financial resilience

Some financial stress may be inevitable, but building financial resilience may allow you to overcome obstacles more easily. The more you learn about managing your money, for instance, the more prepared you’ll feel if the unexpected happens. Growing your emergency savings also may increase resilience since you’ll be more financially prepared to cover unexpected expenses or pay your living expenses.

6. Seek help and support

Many colleges have resources to help students experiencing financial stress, like financial literacy courses or funds that provide some assistance for students in need. Talk to your admissions counselor or advisor about your concerns, and they can direct you to sources of support. Your school’s counseling center can also be a great resource for mental health assistance if you’re struggling with financial stress.

The bottom line

Financial stress can affect college students’ health and wellbeing, but it doesn’t have to derail your dreams. Setting smart financial goals and developing simple plans to achieve them may help ease your stress. Revisit and adjust your plan as needed to ensure it continues to work for you, and seek additional support on campus as needed to help keep you on track.

 JPMorgan Chase Bank, N.A. Member FDIC