U.S. credit‑card debt hits $1.26 trillion
Federal Reserve Bank of New York figures show a quarter‑to‑quarter rise in credit‑card debt and an increase in long‑delinquent accounts.
U.S. consumers' outstanding credit‑card balances reached $1.26 trillion in the second quarter of the year, moving closer to the record $1.28 trillion posted at the end of last year, according to data from the Federal Reserve Bank of New York.
Rising balances, rising delinquencies
Balances increased by about $21 billion over the three‑month period. Economists point to strong consumer spending and higher prices for food, fuel and other essentials as the main drivers behind the increase.
The share of accounts that are more than 90 days past due has climbed sharply: it was 7.8 percent in mid‑2022 and stood at 12.8 percent at the start of this year, indicating a growing number of households struggling to keep up with payments.
Total U.S. household debt reached $18.8 trillion. The largest component remains mortgage debt, at $13.12 trillion; auto loans set a new high at $1.71 trillion; student loans total $1.65 trillion; and credit‑card debt accounts for the remainder of the total.
Analysts say the combination of elevated price pressures and robust spending has strained household finances, pushing more borrowers toward longer delinquencies even as the overall economy shows mixed signals.
Economists and lenders will be watching upcoming data to see whether the trend in card balances and late payments continues or eases as interest rates and consumer incomes evolve.
Photo: press material from the event
