OAN’s James Myers
9:10am – Thursday, February 8, 2024
Credit card debt nationwide has once again hit an all-time high, according to a new report.
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New data released Tuesday by the Federal Reserve Bank of New York showed that Americans’ credit card balances have reached a staggering $1.13 trillion.
The data also showed that credit card debt increased by $50 billion in the fourth quarter of 2023, which was a 4.6% increase from the previous quarter.
Additionally, the staggering increase in credit card debt will increase total household debt by $212 billion to $17.5 trillion in the fourth quarter of 2023, according to the New York Fed’s latest Quarterly Report on Household Debt and Credit. It is said that it has reached .
Inflation and rising interest rates are the main drivers of the nation’s credit card debt problem, said Ted Rothman, senior industry analyst at Bankrate.
As credit card debt increases, delinquency rates are skyrocketing, reflecting the average American’s failure to pay their credit card bills.
“More people are taking on more debt for longer periods of time,” Rothman said in an emailed statement. “For example, 49% of Credit Cardholders have debt each month, up from 39% in 2021.”
Additionally, people across the United States are taking on more debt when purchasing cars. Auto loan balances increased by $12 billion to $1.61 trillion in the fourth quarter, and delinquencies also increased.
Student loan balances also increased by $2 billion, now at $1.6 trillion.
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