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Americans are racking up more credit card debt as they continue to battle high inflation and interest rates.
New data published Thursday by TransUnion shows the average debt per borrower hit $6,218 at the end of the first quarter, an 8.5% increase from one year ago.
Consumers owe a collective $1.02 trillion in credit card debt.
«As consumers manage expenses amidst stubbornly high inflation, demand for credit continues to be strong despite the currently relatively high interest rates,» said Paul Siegfried, senior vice president and credit card business leader at TransUnion.
AMERICANS ARE CARRYING A RECORD AMOUNT OF HOUSEHOLD DEBT
Most households have seen their monthly expenses rise as the result of the ongoing inflation crisis. Although the consumer price index has fallen from a peak of 9.1%, it remains notably higher than pre-pandemic levels. And when compared with January 2021, before prices began to spike, inflation is up more than 18%.
Most households have seen their monthly expenses rise as the result of the ongoing inflation crisis. (iStock / iStock)
The findings come shortly after the New York Federal Reserve released new data revealing that a growing number of Americans are falling behind on their monthly credit card payments.
The flow of credit card debt moving into delinquency hit 8.9% in the first quarter at an annualized rate, above pre-pandemic levels. In fact, the percentage of credit card balances in serious delinquency — in which payments are at least 90 days late — climbed to its highest level since 2012.
«In the first quarter of 2024, credit card and auto loan transition rates into
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