Consumer debt soars to highest level in over a decade
Americans racked up the most monthly consumer debt in over a decade in February, amid a surge of credit card swiping.
Why it matters: It could mean climbing inflation and falling rates of savings are forcing more people to use plastic.
Driving the news: The Federal Reserve's monthly consumer credit report for February showed levels of consumer debt — not including mortgage debt — jumped by $41.8 billion, or 11.3%.
- Revolving credit — typically credit cards — rose by a seasonally-adjusted annual rate of 21%, up from 4% the prior month.
- Nonrevolving credit, which includes auto and student loans, was up 8.4%.
The bottom line: COVID-era stimulus payments to American families are a distant memory, as is the savings cushion they briefly created. And remember, this data came before the worst of the current gasoline price spike.