Consumer Debt Spikes in Q2 2021

The Federal Reserve Board has released the Q2 2021 G-19 Report. The G-19 reveals that in Q2 2021, non-real estate-secured consumer credit increased at a seasonally adjusted annual rate (SAAR) of 8.8%. Revolving debt increased by 10.7% and nonrevolving debt increasing by 8.3%. On a SAAR basis, consumer credit totaled $4.3 trillion, with $992 billion comprised of revolving debt and $3.3 trillion in non-revolving debt. This level marks a total increase of $93 billion from Q1 2021, with revolving credit increasing $26 billion and non-revolving credit increasing by $67 billion. Of note, revolving debt (comprising largely of credit card debt) not only recovered from the negative territory that had been typical during the ongoing pandemic, but it also increased at a rate which was unprecedented for over a decade.