Consumer credit unexpectedly contracted $182 million in May, snapping a six-month streak and stunning economists who had forecast a $17.5 billion gain. Revolving credit, primarily credit cards, fell $5.3 billion, the second-largest monthly drop since November 2020, while non-revolving credit rose just $5.1 billion. Extra tax refunds totaling up to $100 billion likely drove May's credit card paydown, temporarily masking pressure from record 22% interest rates. Individual bankruptcy filings surged 8% year over year in May, suggesting some consumers shed debt through financial collapse rather than improved discipline.