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Consumers Go Down Market to Keep Racking Up Credit Card Debt

  • Spending on largest lenders’ cards soared 20% to $1.1 trillion
  • Write-offs remain low as customers stay on top of their bills
Operations Inside A Wal-Mart Stores Inc. Location Ahead Of Black Friday
Photographer: Patrick T. Fallon/Bloomberg

Credit-card executives have started to see US consumers shift their spending to lower-cost products as they grapple with inflation at its highest level in 40 years. 

Overall volume on credit cards soared 20% to $1.1 trillion at the country’s largest lenders in the second quarter, with many of them reporting record spending for the period. Executives said the recent surge in prices has done little to damp consumers’ appetite for either travel or goods and services.