According to data released Tuesday by the Federal Reserve Bank of New York, Americans’ credit card balances surged to a new record high of $1.13 trillion.
In the fourth quarter of 2023 alone, credit card debt saw a notable increase of $50 billion, marking a 4.6% jump from the previous quarter.
The latest “Quarterly Report on Household Debt and Credit” from the New York Fed revealed that total household debt climbed by $212 billion to reach $17.5 trillion in the same period.
A concerning trend emerged as the number of Americans tardy in making credit card payments rose. Delinquencies, indicating missed credit card bill payments, saw an uptick across all age groups, with borrowers aged 30-39 experiencing notably accelerated rates of missed payments.
New York Fed researchers cautioned that the resurgence of credit card debt to levels worse than pre-pandemic times may indicate financial strain on many households’ budgets. This observation was shared during a call with reporters on Tuesday.
While the researchers stopped short of labeling the higher credit card debt as a “flashing red signal,” they emphasized its significance as a potential indicator of financial pressure faced by numerous households. Notably, credit card balances first exceeded $1 trillion in August of the previous year.
