Revolving credit, which includes credit cards, surged by 21.4%.
“All of this newfound debt that Americans have is only going to get more and more expensive in the coming months,” said Matt Schulz, chief credit analyst for Lending Tree.
The rise in debt levels is likely driven by two factors, Schulz 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,” Schulz 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.”