In August, revolving credit increased by a staggering 18.1% as total consumer debt surged to a record $4.68 trillion, according to the latest consumer credit data from the Federal Reserve. Total consumer debt increased by $32.2 billion in August, an 8.3% increase on an annual basis. That was well above the $24 billion projection.
In July, it appeared debt growth was cooling slightly, but the August data showed a big jump from July’s 6.8% increase. The Federal Reserve consumer debt figures include credit card debt, student loans, and auto loans, but do not factor in mortgage debt. When you include mortgages, US consumers are buried under more than $16 trillion in debt.
US consumer debt grew by an average of over $31 billion per month through the first eight months of the year. Americans are burning up their plastic to make ends meet in these inflationary times. Revolving credit, primarily reflecting credit card debt, rose by another $17.1 billion in August. To put the 18.1% increase into perspective, the annual increase in 2019, prior to the pandemic, was 3.6%. It’s clear that with stimulus money long gone, Americans have turned to plastic to make ends meet as prices continue to skyrocket and as a result, total revolving debt now stands at $1.154 trillion — well above the pre-pandemic record.