U.S. Credit Card Debt Reaches All Time High

According To The Federal Reserve Bank

U.S. credit card debt surged by $45 billion between Q1 and Q2 2023, reaching a record high. About 50% of cardholders now hold month-to-month debt, up from 39% in 2021.

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Credit card accounts increased by 5.48 million, totaling 578.35 million in the U.S. This growth signifies a robust consumer economy and reduced dependence on cash transactions.

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A US Federal Reserve report showed a record high credit card interest rate of 22.2% in May. Over 70 million new credit card accounts opened since the pandemic's onset.

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Last quarter, U.S. household debt reached a new high of $17.06 trillion, a 0.1% increase, as per New York Fed data dating back to 2003.

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Auto-loan debt grew by $20 billion, reaching $1.58 trillion. New auto loans, including leases, totaled $179 billion.

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Student-loan debt decreased by $35 billion to $1.57 trillion, with federal loan payments on hold until October.

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Problem With Credit Card Debt

Elevated debt burdens can result in diminished economic expansion and financial hardship for individuals grappling with expenses, particularly as incomes lag behind inflation.

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