The secret to the current recovery is that American households are up to their eyeballs in debt once again! Consumer credit hits a record $3.7 trillion.

mybudget360.com / by mybudget360 / Oct 27, 2017

Do you notice more credit card offers hitting your mailbox?  Are you noticing more “easy financing” for purchasing a new car?  Welcome to the new recovery where spending is being fueled by consumer credit.  Once again people are spending beyond their means.  In an economy driven by consumption you need to keep people spending and splurging to keep the machine moving.  Yet this recovery is being driven by massive consumer debt.  We now have record credit card debt, record student debt, and record auto debt.  None of these sources of debt really builds wealth in the long run.  And banks are once again going into the subprime trenches just to find consumers to lend to.  The Great Recession was really the Great Credit Crisis and here we are going deep into debt again.

Consumer debt hits a record level

Consumer credit has now hit a record level at $3.7 trillion.  This segment of credit is not really beneficial in building long-term wealth especially if you look at credit card debt or auto loans.  This is simply spending future earnings today.

Take a look at consumer credit:

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