This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Ahead Of The Bell: US Consumer Credit

WASHINGTON (AP) â¿¿ Consumers likely increased their borrowing in December, helped by gains in auto loans and student loans.

Economists forecast that consumer borrowing rose by $14.4 billion in December, compared to November, according to a survey by FactSet. The Federal Reserve will release the report at 3 p.m. EST Thursday.

In November, consumers increased their borrowing by $16 billion to a seasonally adjusted record of $2.77 trillion.

The November gain was led by a big rise in borrowing that covers autos and student loans. The category that covers credit card debt rose but by a much smaller amount.

Credit card debt has risen only modestly over the past two years.

Consumer confidence fell sharply in December, a drop that was blamed in part about worries over whether Congress and President Barack Obama would be able to reach a budget deal to avert sharp increases in taxes and across-the-board government spending cuts.

An agreement was reached but the deal did not prevent Social Security taxes by rising by two percentage points, an increase that will reduce take-home pay by $1,000 this year for a worker making $50,000.

Analysts expect that the trends apparent in 2012 in consumer borrowing will be maintained in 2013 with solid gains in auto loans and student loans but weaker growth in credit card debt.

They say that consumers are now willing to take on more debt, but slow wage growth and still-high unemployment will make many households leery of taking on too much debt.

The Federal Reserve's borrowing report covers auto loans, student loans and credit cards. It excludes mortgages, home equity loans and other loans tied to real estate.

The overall economy actually shrank in the October-December, dipping at an annual rate of 0.1 percent, the first quarterly decline since the recession was ending in the summer of 2009.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,048.52 +104.71 0.62%
S&P 500 1,967.57 +2.89 0.15%
NASDAQ 4,415.49 +19.2860 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs