Key facts
- US credit card debt reached $1.26 trillion in the second quarter.
US credit card debt climbed to $1.26 trillion between April and June, approaching last year's record of $1.28 trillion. Delinquencies remain a concern, with over 90-day past-due balances rising significantly.
The rising credit card debt and increasing delinquencies signal growing financial strain on American households, potentially impacting consumer spending and economic stability.
Credit card debt in the United States has climbed to $1.26 trillion, nearing the record high of $1.28 trillion set last year, according to a report from the Federal Reserve Bank of New York. The debt increased by $21 billion, or 1.7%, in the second quarter.
Concerns about household financial stress have been raised by an increase in credit card delinquencies of over 90 days past due, which reached 12.8% early this year, a level not seen since the Great Recession. However, the overall share of household debt that was past due fell slightly to 4.7% in the second quarter.
High inflation is contributing to households' difficulty in maintaining their standard of living, making it harder to pay off credit card balances. Experts note that carrying a balance can pose risks, especially during economic downturns, citing the 2008 financial crisis as an example of the potential harm.
In addition to credit card debt, US consumers took out a record $211 billion in auto loans during the second quarter.