Credit Card Balance Of U.S Jumps Above $ 1 Trillion For The First Time

The US credit card debt has surged past an unprecedented $1 trillion, a historic high as reported by the New York Federal Reserve. Within the April-June period, credit card debt escalated over 4%, amassing an additional $45 billion in liabilities. This surge contributed to a record-breaking total household debt of $17.06 trillion, a $16 billion increase. Despite previous buffers of excess savings and pandemic-related forbearances, households face mounting strain due to rising costs and reduced savings, leading to an uptick in credit card delinquencies. With a delinquency rate of 7.2% for 30-day overdue credit card debt, the highest since 2012, pre-pandemic challenges resurface, posing concerns for commercial banks. Evolving financial dynamics encompass credit card debt, inflation, and income struggles, shaping current economic trends.