Hardware Retailing The Industry's Source for Insights and Information
Total outstanding U.S. consumer debt stood at $5.10 trillion for the third quarter of 2024, increasing at an annualized rate of 3.28%, according to the Federal Reserve’s G.19 Consumer Credit Report.
Consumer debt has slowed over the past two years, peaking at a high rate of 9.16% in Q2 of 2022. However, Q3 of 2024 experienced an uptick in growth from the previous quarter’s rate of 1.14%.
Revolving debt, primarily credit card debt, reached $1.36 trillion in the third quarter, rising at an annualized rate of 2.79% and marking a slight increase from Q2. As consumer spending has outpaced personal income, savings rates have been declining and consumer debt has increased.
High inflation and rising interest rates led people to reduce their borrowing. However, the growth rate ticked up in the latest quarter, possibly reflecting recent rate cuts, which were lowered in September.
