As of June 2017, Americans had a record $1 trillion in revolving debt. Nonrevolving debt is growing even faster. 

MarketWatch has “One Sure-Fire Prediction for 2018 ” Americans will take on even more debt.

The average credit-card balance per consumer will rise about 1% next year, according to TransUnion. This would be the fifth year in a row that the debt level would increase. Today, households that have credit-card debt each have about $15,654, according to NerdWallet, so their balances could rise about $156 next year.

The rise in debt is partially because of consumers making unnecessary purchases, Palmer said; some 41% of the 2,000 consumers NerdWallet surveyed in November said they spend more than they can afford on items they don’t need.

But there are other factors at play. Expenses like food and housing are “skyrocketing” faster than income, she said. That leaves little money for other essentials and emergency funds for expenses like medical bills.

“It’s really striking how much credit-card debt is weighing on American households,” said Kimberly Palmer, a credit-card expert at the personal finance company NerdWallet.

Trends

I produced the top chart from the latest Fed G.19 Report on Consumer Credit.

The trend is unmistakable, but more so for nonrevolving credit than credit card debt.

Sure-Fire Prediction?

It is by no means a “sure-fire” prediction that credit will expand in 2018.

Writeoffs on consumer credit are poised to soar once a recession hits. Consumers will once again attempt to pay down credit card debt.