United States revolving credit surges as consumer debt balances grow

United States revolving credit jumped at a 14.5 percent annual rate in September, PYMNTS reported on Friday, citing Federal Reserve data. The increase made credit cards and revolving lines the fastest-growing part of consumer debt for the month. Revolving balances accounted for more than half of the 28 billion dollar expansion in consumer credit recorded in the Federal Reserve G19 report. [1]

Nonrevolving debt showed the opposite trend during the same period. Nonrevolving credit growth slowed for a second consecutive month, dropping to a 3.6 percent annual rate, according to PYMNTS. Meanwhile, debt management confidence fell 10.1 percentage points among consumers living paycheck to paycheck who previously managed to pay their bills without difficulty. [1]

The credit figures follow earnings reports from major financial institutions last month. As FTMQ Business reported earlier, Capital One generated third quarter net income of 3.5 billion dollars, supported by an 11 percent increase in credit card purchase volume. At the same time, American Express raised its full-year 2026 profit guidance following strong third-quarter earnings, as FTMQ Business reported previously. [4][5]

The shift toward revolving borrowing highlights how everyday household costs are straining personal budgets. When families rely on credit cards for routine purchases like groceries, high interest rates can quickly compound balance totals. Consumers managing debt must balance rising credit balances against their monthly household income. [1]