Credit card debt hits record high as Americans struggle with cost-of-living
Federal Reserve Bank of New York; Note: Not adjusted for inflation; Chart: Axios Visuals Americans' credit card balances hit a record $1.29 trillion in the third quarter, according to a new report released by the Federal Reserve Bank of New York.
Key points
- Vehicle transaction prices are up to a new record high, according to the Kelley Blue Book — and some buyers are extending their car loans to finance them.
- Yes, but: Fewer credit card balances are becoming seriously delinquent, a sign of some improvement in Americans' ability to keep up with payments.
- Borrowers under 30 had the highest rate of credit card debt newly becoming at least 90 days overdue, the Fed's report found.
Between the lines: A separate report from the New York Fed on Tuesday showed Americans in lower-income neighborhoods are having a harder time keeping up with credit card payments relative to their wealthier counterparts.
Additional details
- In the lowest-income neighborhoods, 10.3% of credit card balances became seriously delinquent over the past year — more than double the 4.4% rate in the wealthiest neighborhoods.
- Why it matters: Falling behind on credit card payments can trap struggling households in a cycle of fees, damaged credit and increasingly expensive borrowing.
- Total household debt, including mortgages and student and auto loans, rose $334 billion, reaching a record $19.1 trillion in the third quarter.
- The big picture: Average credit card balance per borrower is now $6,678, according to TransUnion's Q3 insights report.
- By the numbers: Consumer credit card balances rose by $22 billion in the third quarter, an increase of 1.7%.
How this summary was made: extractive summary — built from the sources' own reporting. It is drawn only from the reporting of the sources listed below — read the originals for full detail. How we summarize →
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