By Jonnelle Marte

(Reuters) – Americans are spending more, increasing credit card debts and spending more. This is a reverse of the shift in spending that occurred during the crisis, when people cut back on spending and significantly reduced credit card debt.

Credit card use is returning to pre-pandemic conditions, with credit cards usage increasing by $17billion in the second and third quarters. Balances at 2019’s end were $123 billion higher than in 2019.

Donghoon Lee (a New York Fed research officer) stated in a statement that “as pandemic relief efforts begin to wind down, we’re beginning to see some of the credit cards balance trends seen during pandemic,” Donghoon Lee said. While pandemic restrictions have been lifted, consumption has normalized and credit card balances and usage are returning to pre-pandemic levels.

Research suggests that balances on credit cards tend to follow a seasonal pattern. They see modest increases in the third and fourth quarters followed by an increase more significant in the final quarter. These balances are then reduced by consumers as holiday shopping is completed, researchers wrote.

The pandemic saw households receiving direct cash payments, forbearance programs, and support from student loans and mortgages that were paused, which significantly decreased their credit card debt.

New York Fed researchers have said that with the end of forbearance programs, consumers who paid down their debt will still be able to access some credit in order to cover expenses while searching for jobs.

In addition, total household debt rose $286 billion to $15.24 Trillion in the third quarter. The increase was driven primarily by an additional $230 Billion in mortgage payments. The report revealed that total debt levels are $1.1 trillion higher than they were at 2019’s end.

The third quarter saw an increase in auto debt by $28 trillion and a rise of student loan balances by $14 billion.

These findings revealed that consumers still have low levels of debt, due in part to federal assistance and forbearance programs.

After declining during the pandemic, credit card issuances for lower-credit score borrowers are back at pre-pandemic levels. Research shows that high-quality borrowers are receiving the bulk of credit, regardless of type of loan.