Consumer credit growth slowed to 1.9% in August as revolving credit contracted at a 4.2% annual rate.

Card borrowing fell as interest-bearing accounts carried an average APR above 22%.

Consumer credit is still growing, but consumers eased off the form of borrowing they can adjust most readily from month to month.

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Federal Reserve data released Wednesday (Oct. 7) show consumer credit expanded at a seasonally adjusted annual rate of 1.9% in August, less than half July’s revised 4.1% pace and the slowest since May. Total outstanding credit rose to $5.197 trillion from $5.189 trillion.

The growth came from nonrevolving credit, which includes auto and student loans. That segment increased at a 4.1% annual rate, down only modestly from a revised 4.7% in July and well above its pace during much of late 2025 and early 2026. Nonrevolving balances reached $3.844 trillion in the latest reading.

Part of the increase reflects the calendar. Federal government-held consumer credit, almost entirely student loans, climbed to $1.622 trillion from $1.608 trillion. The increase is consistent with late-summer student-loan disbursements before the fall academic term.

The category, which includes credit card balances, contracted at a 4.2% annual rate after expanding 2.5% in July. Revolving balances fell to $1.352 trillion from $1.357 trillion, retreating from the record reached a month earlier. August produced the steepest monthly decline in at least the past year.

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