Revolving debt, led by credit cards, grows fastest since 2022 as consumers rely on credit for essentials.

Revolving debt, including credit cards, surged at a 9.1% annualized rate in March, marking the fastest growth since 2022. Consumers are increasingly using credit cards to manage everyday expenses amid high borrowing costs and persistent inflation. Total consumer credit rose to $5.14 trillion, with revolving credit as the main driver. Despite elevated interest rates, credit card balances and spending are rebounding, reflecting a shift toward using credit for essential spending rather than discretionary purchases. Nonrevolving debt like auto and student loans also grew but at a slower pace. This trend highlights how consumers adapt to economic pressures by leveraging credit cards for financial flexibility and cash flow management.