OAN’s James Meyers
9:10 AM – Thursday, February 8, 2024
Credit card debt across the United States hits another record high, according to the latest report.
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New data released by the Federal Reserve Bank of New York on Tuesday showed that Americans’ credit card balances have reached a staggering amount of $1.13 trillion.
The data also showed that credit card debt increased by $50 billion in the fourth quarter of 2023, which is a 4.6% jump from the previous quarter.
Additionally, with the alarming rise in credit card debt, total household debt rose by $212 billion to reach $17.5 trillion in the fourth quarter of 2023, according to the New York Fed’s latest ”Quarterly Report on Household Debt and Credit.”
According to Bankrate’s senior industry analyst Ted Rossman, inflation and higher interest rates are the leading causes of the credit card debt problem across the country.
With the rise in credit card debt it’s also reflecting on missed payments for credit card bills by the average American, causing delinquency rates to skyrocket.
“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.”
Furthermore, across the U.S. people are taking on more debt when they purchase vehicles. Auto loan balances rose an eye-popping $12 billion in the fourth quarter to $1.61 trillion, causing delinquencies to rise as well.
Student debt loan balances also increased by $2 billion and currently stands at $1.6 trillion.
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