Biden Effect: Credit Card Debts Hit Record High of $1.13 Trillion, Delinquencies Surge 50%

A new Federal Reserve Bank report has revealed credit card debts among U.S. households have reached a record high of $1.13 trillion.

Bankrate’s analyst Ted Rossman reported higher interest rates and ongoing inflation have led many Americans to struggle to pay down their credit card balances.

Rossman stated that more people are carrying debt for longer periods and shared “49% of credit cardholders carry debt from month to month, up from 39% in 2021.”

The new Fed report also revealed credit card delinquencies have surged 50% in the past year alone.

Per CBS:

U.S. households are carrying a record amount of credit card debt, according to a new Federal Reserve Bank of New York report released Tuesday. The bank said the data indicates financial distress is on the rise, particularly among younger and lower-income Americans.

Total household debt grew by $212 billion, rising to $17.5 trillion in the fourth quarter of 2023, the Fed’s quarterly report on household debt and credit shows.

Credit card balances rose by $50 billion to hit a record $1.13 trillion. Inflation and higher interest rates are contributing to rising credit card debt, resulting in more Americans struggling to pay down their credit card balances, according to Bankrate’s senior industry analyst Ted Rossman.

“We’re seeing more people carrying more debt for longer periods of time,” Rossman said in an emailed statement. “For example, 49% of credit cardholders carry debt from month to month, up from 39% in 2021.”

Here was the Biden admin’s response to the new report:


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