U.S. Credit Card Debt Reaches Record $1.29 Trillion Amid Financial Pressure
Total U.S. credit card debt has climbed to a record $1.29 trillion, marking a 4.2% increase from the previous year, according to research from the Federal Reserve Bank of New York. This rise comes as consumers increasingly rely on high-interest credit to manage rising costs for essentials like groceries and gas, driven by persistent inflation and elevated borrowing costs. The average consumer now carries a balance of $6,678, up 2.4% year-over-year. Analysts note that an increasing share of new debt is being held by lower-income borrowers with lower credit scores, leading to higher levels of financial distress and rising delinquency rates following the loosening of lending standards during the pandemic.
Topics: consumer spending credit card balances Federal Reserve Bank of New York report household debt inflation