Local NewsConsumer debt soared by $52 billion in March

Consumer debt soared by $52 billion in March

-

(CNN) — Americans are racking up debt at record rates.

Consumer debt levels for March 2022 climbed by $52.4 billion, an annual increase of 14%, seasonally adjusted, according to Federal Reserve data released Friday.

Revolving credit, which includes credit cards, surged by 21.4%.

Despite robust wage growth — over the past 12 months, average hourly earnings have gone up by 5.5% — consumers are seeing those gains eroded by the highest inflation in 40 years. The cost of food is up nearly 9% over the last year, and a gallon of gas now averages $4.279 at the pump.

Paying off credit card debt is about to get even more difficult for those who don’t make the minimum monthly payment: The Federal Reserve on Wednesday announced a half-point rate hike as part of a series of actions intended to address rampant inflation. That means interest rates will rise on everything from credit cards to car loans, pressuring household budgets even further.

“All of this newfound debt that Americans have is only going to get more and more expensive in the coming months,” said Matt Shulz, chief credit analyst for Lending Tree.

The rise in debt levels is likely driven by two factors, Shulz said. First, there is some pent-up spending after lockdown. Then there are other cash-strapped individuals who are turning to credit cards to pay for basic needs that have grown more expensive, he said.

“An increase in credit card debt can be a sign of confidence, or it can be a sign of concern,” Shulz said. “I think we’re seeing both of those simultaneously right now in this country, and it’s just another example of how different people have been impacted in the wake of the pandemic.”

The-CNN-Wire
™ & © 2022 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.

Latest news

Navigating Financial Growth: Leveraging Bookkeeping and Accounting Services for Startups

As a startup owner, you know that the accounting often receives less attention than immediate priorities. Product development and...

TradingView: A Comprehensive Review

In the sphere of internet based trading and analysis, Trading View has become a prominent player encompassing charting capabilities,...

Crypto Legal UK Secures Coveted Awards, Reinforcing Its Status as a Pioneer in Blockchain Forensics and Legal Services

Crypto Legal, a prominent legal and forensic firm based in London, has marked the year 2023 with significant achievements...

Debora Patricia Antunes: National Excellence in Supply Chain Management

Debora Antunes is no ordinary professional - she’s a perfect example of operational excellence in the business world. The...
- Advertisement -

Gillette’s Iconic South Boston Building to Undergo Transformation as Manufacturing Moves

Procter & Gamble Co. (P&G), the parent company of Gillette, has unveiled plans to relocate its manufacturing operations from...

Get Ready to Scream: 11 Terrifying Haunted Houses Near Boston

Embrace the spine-chilling spirit of the season as Boston and its surrounding areas unveil a lineup of hair-raising haunted...

Must read

TradingView: A Comprehensive Review

In the sphere of internet based trading and analysis,...
- Advertisement -

You might also likeRELATED
Recommended to you