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US Credit Card Debt Hits Record $1.29 Trillion in Third Quarter

US credit card debt hit a record $1.29 trillion in the third quarter as financial pressures mount.

Updated 1 min read

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Key points

  • US credit card debt reached a record $1.29 trillion in the third quarter.
  • The average credit card balance per consumer increased to $6,678 year over year.
  • The Federal Reserve Bank of New York released the household debt report on Tuesday.

Why it matters. Record debt levels and rising delinquency rates indicate that high inflation and borrowing costs are causing significant financial hardship for American households, potentially impacting consumer spending and economic stability.

Updated Sources: CNBC

US credit card balances reached a record $1.29 trillion in the third quarter, a $22 billion increase reported by the Federal Reserve Bank of New York on Tuesday. The average consumer balance rose to $6,678, while the number of cardholders grew to 178 million, according to TransUnion data. Officials attribute this surge to financial hardship caused by high inflation and rising borrowing costs that have squeezed household budgets.

Latest updates

US Credit Card Debt Hits Record $1.29 Trillion in Third Quarter

According to the Federal Reserve Bank of New York's latest household debt report released Tuesday, collective credit card balances climbed by $22 billion in the third quarter to reach an all-time high of $1.29 trillion. This represents a 4.2% increase from the same period last year, indicating that Americans are increasingly relying on credit cards to manage strained household budgets amid persistently high prices. The data highlights a growing trend where consumers are turning to revolving credit to make ends meet as inflationary pressures continue to impact purchasing power across the nation.

CNBC

Sources

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