Consumer Debt at Record for Most Americans, Except the Wealthy

Most Americans are more indebted than ever, underscoring a persistent and widening wealth divide in the US.

Consumer debt, including credit cards, rose to an all-time high for the 118 million US households among the bottom 90%, according to the Federal Reserve’s latest data on the distribution of household wealth. The group’s debt soared by $300 billion over the last year -- the largest annual gain on record -- as households deal with higher prices for everything from food to clothing and rents.

Meanwhile, consumer debt among the top 10% of households is virtually unchanged over the past year, the ...