Households increased debt at the fastest pace in 15 years due to hefty increases in credit card usage and mortgage balances.
The increase stems from"a combination of robust consumer demand and higher prices," a Fed official said. Total debt jumped by $351 billion for the July-to-September period, the largest nominal quarterly increase in 2007, bringing the collective household IOU in the U.S. to a fresh record $16.5 trillion, up 2.2% from the previous quarter and 8.3% from a year ago.
Debt has surged over the past year due to inflation running near its highest pace in more than 40 years and amid rising interest rates and strong consumer demand.
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