Consumer credit hit a record high of $4.82 trillion in February, according to a new report from the Federal Reserve, continuing a pattern of historically high rates of debt that began at the start of 2022, as interest rate hikes add pressure to mounting personal debts.Key Facts
Outstanding consumer revolving credit, which is mostly based on credit card balances, as well as auto loans, rose 5% over February, 2022, compared with January’s 12.7% jump and December’s 8.
Total consumer credit has risen $34.8 billion since December to a total of roughly $4.82 trillion, which comes to about a quarter of the total amount of Americans’ after-tax income.. That’s how much credit card debt the average American has, according to data firm Experian.
. Now that pandemic-related federal aid has slowed and inflation is up, household savings are falling, the Bankrate data shows, which could be a factor in increased credit card debt.
It was a record because of inflationary effects on prices.
' Say It Ain't So, Joe '
Record debt racking up record debt he's at the FED it's going to raise the interest rates probably a 25%. It is necessary in order to keep spending down. People have to be soluble. Only the government has more leeway because they can print money and people can't. Too bad