The April consumer credit report from the Federal Reserve saw a surge in credit card debt, resulting in the largest ever increase in revolving credit, as Americans’ savings from the pandemic are running out, according to ZeroHedge.
Consumer credit erupted to $38.1 billion in April, far above the expectations of a $35 billion increase, according to ZeroHedge. Non-revolving credit, such as student loans and car loans, rose by about $21.1 billion, the 6th highest on record, the outlet noted. (RELATED: A Host Of Cartoonish Bond Villains Are Deciding Your Fate From The Swiss Alps)
The biggest shock came from revolving credit, or credit card debt, which rose by the second highest amount on record to $17.8 billion, the outlet continued. This means that the total revolving credit is back at an all-time high of just over $1.1 trillion, the outlet reported.
‘Put On Your Seat Belts On’: BlackRock President Warns Of Massive Shortages Due To Inflation https://t.co/ZbFkqFkrHm
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These shocking numbers mean that all the post-COVID pandemic credit card debt reduction has been erased just before annual percentage rates start to move even higher, ZeroHedge noted. This essentially means that any excess savings accumulated by America’s middle class is gone, the outlet argued.
At the end of the first quarter of 2022, automobile and student loans hit an all-time high too as consumers rushed to put new expenditures on credit, the outlet continued. The chief credit analyst for Lending Tree told CNN that this type of spending “can be a sign of confidence, or it can be a sign of concern.”
Inflation has largely outpaced wage growth in the last year, so consumers had to rely on savings and credit cards to afford essentials, Bloomberg reported. A record 537 million credit card accounts were opened in the first quarter of 2022, the outlet noted.