Credit card debt surges to another record high, New York Fed data shows
Ramsey Solutions personality Jade Warshaw breaks down the latest economic data that shows consumers credit card debt is piling up amid a jump in spending.
Americans' credit card debt continues to climb, hitting a fresh record at the end of September, according to a new report from the New York Federal Reserve.
Total credit card debt rose to $1.17 trillion during the third quarter, an increase of $24 billion from the previous quarter, according to the report. It marks the highest level on record in Fed data dating back to 2003.
Credit card debt from US consumers is rising by billions of dollars amid higher inflation and interest rates, reaching another record high last quarter. (Photo by FREDERIC J. BROWN/AFP via Getty Images / Getty Images)
The report showed total household debt also climbed to a new high of $17.94 trillion, along with balances on mortgages ($12.59 trillion), auto loans ($1.64 trillion) and student loans balances ($1.61 trillion).
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«Although household balances continue to rise in nominal terms, growth in income has outpaced debt,» said Donghoon Lee, Economic Research Advisor at the New York Fed. «Still, elevated delinquency rates reveal stress for many households, even amid some moderation in delinquency trends this quarter.»
Americans' credit card debt hit another record high of $1.17 trillion last quarter. (Photo Illustration by Justin Sullivan/Getty Images / Getty Images)
While still above pre-pandemic highs, credit card delinquencies did ease some last quarter to 8.8%, down from 9.1% from the previous quarter. Delinquencies for auto loans and mortgages both worsened slightly, rising by 0.2 and 0.3 percentage points respectively.
FED SHOULD
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