Credit card use is way up this holiday season

(CNN) More Americans are likely using plastic to pay for their Black Friday holiday shopping deals.

The Federal Reserve says U.S. consumer credit card balances are growing at their fastest pace in more than 20 years.

During the pandemic, the majority of consumers stopped using their credit lines or paid off balances.

But now, with inflation biting into the cost of living, the trend has reversed, with most Americans using almost 22% of their credit card limits.

That’s the highest rate since the first quarter of 2020.

Credit card companies believe that number will increase again by the time the holiday shopping bills arrive.

And according to the Wall Street Journal, the average credit card interest rate has soared to more than 18%.