Americans Are Borrowing Money Again
Consumer demand for credit is high. There was a 39% uptick in auto loans, general-use credit cards and personal loans from April 2020 to April 2021, according to credit-reporting firm Equifax.
When the pandemic first hit, people worried. About getting laid off and/or running out of money. Splurging on a new car, taking a vacation, buying clothes and eating out were off the table. Many focused not on spending, but saving and paying down debt. Now, with the availability of vaccines, all that’s changed. Pent-up demand for things and experiences missed is accounting for recent surge in credit demand.