Consumer credit rises for 4 consecutive months.

In November, Consumer credit rose for the 4^th consecutive month.

According to the Federal Reserve, consumer credit rose from $14.08 billion in October to  $16.05 billion in November.

The rise in consumer credit beat the street estimate of $12.75 billion.

The rise put the total outstanding consumer credit jumped 7% to $1.910 trillion in November.

With strong gain in the job market with 155,000 new jobs in December and a strong demand for students loan and car loan, economist are expecting the trend to continue into the early 2013. Consumer spending accounts for 70% of the US economy. Therefore, a rise in consumer borrowing power could help expand the US economy.

The report doesn’t track debt secured by real estate, such as home equity lines of credit and home mortgages.

“We’ve seen four straight months now of very significant increases in overall consumer credit,” Thomas Simons, a money market economist at Jefferies Group Inc. in New York, said in a phone interview. “I would expect that’s going to continue.

Revolving debt, which includes credit cards, rose by $816.9 million in November, after a $3.44 billion increase the prior month.

The government provided about $4.9 billion in loan mainly in education.

“People might be caught by surprise in January, when they see how much smaller their take-home pay is, and we might see some fuel for the consumer-credit number,” Englund said in a phone interview. “The likely pattern is that we will see some run-up in consumer credit for three or four months.”