America was a nation of savers during the pandemic, but those savings are apparently gone

Justin Boggs is a writer for the E.W. Scripps company. Justin covers anything from politics to sports and entertainment.

With stimulus checks rolling in while vacation plans were on pause, the U.S. became a nation of savers during the pandemic.

During this time, Americans were paying off credit card debt. The U.S. went from a total of $858 billion in consumer debt in March 2020 to $737 billion in April 2021. Credit carddelinquency rates also were at a three-decade low. But that debt quickly shot up to record levels. By last month, Americans had wracked up $1.051 trillion in credit card and other consumer debt.

"Much of the existing research on household savings following the pandemic recession points to a rapid accumulation and more gradual drawdown of excess savings in the United States. Our estimates suggest that pandemic-era savings have been fully spent at the aggregate level," economists Hamza Abdelrahman and Luiz Edgard Oliveira wrote for the Federal Reserve Board.

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