Did the recent recession make consumers realize that carrying large amounts of debt for their credit card and car purchases is a bad thing? No, Americans have not adopted widespread frugality, a report from the Federal Reserve shows. We’re taking on more consumer debt than ever. Yes, even when you adjust it for inflation.

Of course, here’s the catch: when you hear the phrase “consumer debt,” you might think that includes commercial spending like purchases of appliances, cars, and anything that you can put on a credit card. That’s true. While the total doesn’t include home mortgage debt, which peaked in 2007, it does include one type of debt that you might not think of as “consumer spending.”

The Fed’s numbers also include student loans, though. As a nation, we’ve been taking out about $100 billion in student loan debt per year. While people are paying down and paying off their loans, the outstanding total increases every year. While college tuition and fee increases have outpaced inflation in recent years, that’s a huge debt increase.

Americans who put off buying new cars during the recession are apparently doing so, since outstanding auto loans have increased significantly since 2009. Back then, we were actually decreasing the amount of debt we had for cars, paying down a collective $60 billion or so in 2009.

Financial Accounts of the United States 2Q 2014 [Federal Reserve]
Consumer Debt Hits an All-Time High [Bloomberg Businessweek]

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