Fed Data: Consumers Pull Back on Credit Card Use

Outstanding consumer credit edged up only slightly in November as Americans — worried about jobs and inflation — pulled back on their spending.

In November, consumer credit increased at a seasonally adjusted annual rate of just 1.0%, according to the Federal Reserve. This was down from 2.2% in October and 2.7% in September.

Revolving credit, which includes credit cards, decreased at an annual rate of 1.9% in November. This was a reverse from previous months this fall when revolving credit spending had been increasing from 3.7% in September to 4.9% in October.

At the same time, nonrevolving credit, which includes student loans and auto loans, increased at an annual rate of 2.0% — or $6.3 billion — in November from 1.2% in October. Nonrevolving credit was at an annual rate of 2.4% in September.

The inflation expectations by American households increased in the short term, and their expectations for finding a job declined to a series low, according to a December 2025 Survey of Consumer Expectations from the Federal Reserve Bank of New York’s Center for Microeconomic Data. 

Job loss expectations also worsened and delinquency expectations climbed to the highest level since the start of the pandemic, according to the survey that was fielded from Dec. 1 through Dec. 31.

Consumers are worried about losing their jobs in the upcoming year. According to the survey, the perceived probability of losing one’s job in the next year increased by 1.4 percentage points to 15.2%.

But those surveyed also were more optimistic about their future household financial situations. Holding back on spending, in particular credit cards, is one way to better handle household finances. Worries about inflation and job loss are other reasons to ease back on revolving spending such as credit cards.

Some of those surveyed are living on the edge when it comes to credit card payments.

According to the Federal Reserve Bank of New York survey, the perceived probability of missing a minimum debt payment over the next three months is 15.3%, which is the highest reading since April 2020. 

People above the age of 60, people with a high school diploma or less, and people with annual household incomes lower than $50,000 were more likely to respond that it was probable that they would miss a debt payment in the next three months. 

Revolving credit, which is mainly credit cards, decreased at an annual rate of 1.9% in November. This pulling back of credit usage means consumers are becoming more reticent about their credit card spending. Consumer expectations regarding inflation and job loss indicate that consumers are worried enough about both to pull back on credit card spending.