Credit Card Balances Are Over $1 Trillion For the First Time

As a consumer based economy, Americans are always looking towards spending their next dollar. However, the current fiscal times are managing to squeeze money that consumers don't have out of them. With inflation on the rise and high levels of consumer spending, the total credit card indebtness has shattered the record by rising by a whopping $45 billion dollars, crossing $1 trillion dollars total in the past few months.

The New York Fed has reported that Americans are breaking debt records by not only breaking the credit card debt numbers, but also breaking the record for total household debt which crossed $17.06 trillion dollars.

A product of the increase in debt is that people may soon find it hard to get approved for a newly issued credit card as banks are tightening their requirements and standards.

The Fed also reported that other categories have seen an increase in debt over the same time period. Newly issued mortgages rose to just over $12 trillion dollars, auto loans to $1.58 trillion, and student loans decreased to $1.57 trillion.

Source:

https://www.cnbc.com/2023/08/08/credit-card-balances-jumped-in-the-second-quarter-and-are-above-1-trillion-for-the-first-time.html