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Credit card debt rises to $1.26 trillion, nearing all-time record
ABC News - Breaking News, Latest News and Videos • • business
Key Points:
- Americans' credit card debt reached $1.26 trillion in Q2 2024, increasing by $21 billion and nearing the all-time high of $1.28 trillion set in late 2023, according to the Federal Reserve Bank of New York.
- Rising credit card balances are linked to strong consumer spending and inflationary pressures, including higher prices for essentials like groceries and gas.
- The share of credit card balances more than 90 days delinquent rose sharply from 7.6% in mid-2022 to 12.8% by early 2024, driven largely by older debts rather than new charges.
- Other household debts such as auto loans and home equity lines of credit also increased, with auto loan debt hitting a record $1.71 trillion, while student and mortgage debts declined.
- Overall U.S. household debt stands at $18.8 trillion, with mortgages comprising the largest portion at $13.12 trillion, followed by auto loans, student loans, credit cards, and home equity lines of credit.
