Additional Coverage:
New data from the Federal Reserve Bank of New York reveals that Americans’ credit card debt has climbed to $1.26 trillion, marking a $21 billion increase in the second quarter of this year. This figure edges close to the all-time high of $1.28 trillion recorded in the last quarter of 2023.
The rise in credit card balances is largely tied to robust consumer spending and inflationary pressures, particularly on essential items such as groceries and gasoline. Despite steady spending habits, many households are struggling to keep up with their payments. The share of credit card debt more than 90 days past due has grown significantly, from 7.6% in mid-2022 to 12.8% by early 2024.
Researchers from the New York Fed highlighted that many Americans live paycheck to paycheck, making them vulnerable to financial setbacks that can quickly lead to delinquencies. However, they also pointed out that the increase in late payments is more related to older, outstanding debt rather than new charges.
Beyond credit cards, other forms of consumer debt show mixed trends. Auto loan and home equity line of credit balances rose between April and June, while student loan and mortgage debts experienced a decline. Overall, total U.S. household debt has reached $18.8 trillion, with auto loan debt hitting a record $1.71 trillion.
Here is the current breakdown of U.S. household debt by category:
- Mortgages: $13.12 trillion
- Auto loans: $1.71 trillion
- Student loans: $1.65 trillion
- Credit card debt: $1.26 trillion
- Home equity lines of credit: $459 billion
The findings come from an anonymized, nationally representative sample based on Equifax credit report data, providing a comprehensive view of the country’s debt landscape as the economy navigates ongoing financial challenges.