U.S. consumer credit surged by $16.01 billion in July 2025, reaching a total of $5.06 trillion, according to recent data. This increase, primarily driven by credit card debt, represents the third-largest monthly rise on record. Credit card balances alone amounted to $1.31 trillion, with revolving credit expanding at an annual rate of 9.7%. Despite high interest rates, consumer borrowing remains strong, indicating either economic confidence or pressure from rising expenses. Non-revolving credit, which includes auto and student loans, also reached a record $3.75 trillion. Overall, total U.S. consumer debt, including mortgages, neared $17.94 trillion, marking a 2.5% increase from the previous year. The Federal Reserve expects lower interest rates soon, potentially impacting future borrowing and spending trends.