The American Consumer Is Increasingly Living On Credit

U.S. consumers have continued to increase their reliance on revolving credit, with credit card and other revolving consumer debt now exceeding $1 trillion. Although balances declined in 2024, likely reflecting more cautious consumer spending amid economic uncertainty and the market selloff, they have since resumed their upward trend and reached record levels. The increase highlights how consumers are increasingly turning to debt to maintain their spending power, particularly when inflation rises faster than wages.

Source: Board of Governors of the Federal Reserve System (US) via FRED® 

All Commercial Banks 

This graph was produced by Lucas Juery, CFA, CFPⓇ and is not intended to provide financial advice.