$5 Trillion in Consumer Debt: The Frightening Issue in the US Economy No One Is Talking About

Author: NoLimit, early Bitcoin investor; Translation: Jinse Finance

Something extremely alarming is happening to the US economy, and almost no one is talking about it publicly.

This chart isn’t about the stock market, Treasuries, or government spending—it’s about consumer credit.

The money ordinary people are borrowing just to survive.

It has skyrocketed vertically.

For decades, consumer debt grew slowly, almost “naturally.”

Then came the 2000s… the curve started to bend.

After 2008… the slope got steeper.

After 2020… it shot straight up.

Now we’re sitting on over $5 trillion in consumer debt—the highest in US history.

The most critical point most people overlook is:

Americans aren’t borrowing to buy luxury goods anymore,

They’re borrowing to fight inflation and survive:

• Groceries at the supermarket
• Rent
• Medical bills
• Car repairs
• Credit card interest
• Student loans restarting
• Wages not keeping up with prices

People swipe their cards not because they want to buy,

But because they have no choice.

Meanwhile, CNBC repeats “the consumer is very strong” every day like gospel.

But if consumers are really that strong…

Why is the US household savings rate near all-time lows?

Why is the credit card delinquency rate rising faster than any time since the “Great Financial Crisis”?

Why is “buy now, pay later” exploding for everyday expenses?

The truth is simple:

Consumers aren’t strong—they’re just highly leveraged.

Even more dangerous:

Whenever consumer credit surges like this in a parabolic fashion, it never ends well.

People keep borrowing—until they can’t anymore.

Then you get:

• Demand collapse
• Massive layoffs
• Recession
• Wave of defaults
• Credit crunch
• The Fed rolls out “emergency rescue” again

What this chart shows isn’t growth,

It shows pressure building up.

Pressure doesn’t go away on its own,

It only gets released.

What we’re seeing now isn’t prosperity on the rise,

It’s despair piling up.

The US economy has never been driven by innovation,

Nor by productivity,

It’s driven by consumption—70% of GDP.

So here’s the question:

When consumers max out their cards,

When they can’t borrow any more,

When the consumption engine that’s powered America for 30 years suddenly stalls,

What happens then?

This chart might be the most important warning sign for 2025.

Most people won’t notice until it’s too late.

You have to see it clearly right now.