Foreign News

How Americans’ Credit Card Debt Balances Climbed To New Record $1.13 trillion

Micheal Chukwuebuka, Reporting 

ACCORDING to data released Tuesday by the Federal Reserve Bank of New York, Americans’ credit card balances climbed to a new record high $1.13 trillion.

Our source, ABC News, stated in a report that credit card debt increased by $50 billion in the fourth quarter of 2023 alone, a 4.6% jump from the previous quarter.

New York Fed’s latest Quarterly Report on Household Debt and Credit revealed that the data on credit card debt comes as total household debt rose by $212 billion to reach $17.5 trillion in the fourth quarter of 2023.

Stonix News learnt that borrowers between the ages of 30-39 are missing their payments at especially fast rates.

“In the case of credit cards, it looks like things have reverted to a level that is worse than pre-pandemic,” New York Fed researchers told newsmen Tuesday.

The researchers further stated that higher credit card debt is not a flashing red signal but is indicative of strain on many households’ budgets.

ABC News reported that Americans are also taking more debt when they’re buying cars.

Auto loan balances rose by $12 billion in the fourth quarter to $1.61 trillion, while delinquencies also rose.

New York Fed researchers attributed some of the rising auto debt to higher prices for new and used cars in the wake of the pandemic.

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