Credit card debt surged in April
Savings are shrinking.
June 8, 2026
Consumers took on more debt in April. Consumer credit outstanding increased 4.9% at an annualized rate, slightly below March’s 5.2% gain. The results in January and February were weaker. Altogether, consumer credit rose 2.3% compared to a year ago.
Revolving debt, made up primarily of credit cards, jumped 10.4% in April after adding nearly as much, 9.4%, in March. Credit demand rose due to soaring gas prices. Retail sales came in strong for April, even after accounting for inflation.
Nonrevolving debt, which includes car loans, student loans and personal loans, increased almost 3% in April, below the almost 4% gain for March. Vehicle sales actually fell in April due to declining affordability.
Student loan debt continues to compound. Next month, new student loan borrowers will have access to two new repayment plans; critics say that could result in higher monthly payments.
Consumers continued to spend in April by tapping savings and using credit cards.
Matthew Nestler
KPMG Senior Economist
Bottom Line
Consumers continued to spend in April by tapping savings and using credit cards. Savings overall are shrinking. Some lower-income households are relying on credit for essentials.
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