Credit Card Debt Sees Fastest Growth Since 2022

Americans are increasingly relying on credit cards to manage daily expenses, with revolving debt experiencing its most rapid expansion since 2022. The Federal Reserve's latest consumer credit report indicates a substantial acceleration in credit growth, rising to a 5.8% annual rate in March from 2.1% in February. This trend suggests a growing dependence on credit to finance everyday spending, highlighting potential shifts in consumer financial behavior and increasing overall consumer leverage. The first quarter saw a notable annualized expansion in consumer credit, underscoring this heightened reliance on borrowed funds.