Newly released data from the Federal Reserve shows that consumer revolving credit levels reached $1.02 trillion in November, the highest figure since March 2020.
Household debt data from Moody’s Analytics shows over $717 billion of outstanding consumer bank card debt.
Early on in the pandemic, households paid off debt, aided by government stimulus and lowered expenses.
As the economy reopened, it appears that American households are seeing an increase in debt once again.
The holiday shopping season has also contributed to the debt increase.
A steep increase in inflation and living expenses has also contributed to the increased debt burden.
The high inflation has caused negative real wage growth for most U.S. workers.
Most experts agree that the dramatic rise in inflation has numerous causes, most importantly the prolonged lockdowns, federal stimulus, an increase in the money supply, and supply chain hurdles.