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.

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.

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.

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.

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

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

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.