A brand new Federal Reserve Financial institution report has revealed bank card money owed amongst U.S. households have reached a document excessive of $1.13 trillion.
Bankrate’s analyst Ted Rossman reported increased rates of interest and ongoing inflation have led many Individuals to wrestle to pay down their bank card balances.
Rossman acknowledged that extra persons are carrying debt for longer intervals and shared “49% of credit score cardholders carry debt from month to month, up from 39% in 2021.”
The brand new Fed report additionally revealed bank card delinquencies have surged 50% previously yr alone.
BREAKING: Bank card debt delinquency charges surged greater than 50% in 2023 to their highest degree since 2008, in line with the NY Fed.
Final quarter alone, complete bank card debt within the US jumped $50 billion to a document $1.13 trillion.
Auto mortgage delinquency charges additionally surged… pic.twitter.com/hfLiQvjxZ5
— The Kobeissi Letter (@KobeissiLetter) February 6, 2024
Per CBS:
U.S. households are carrying a document quantity of bank card debt, in line with a brand new Federal Reserve Financial institution of New York report launched Tuesday. The financial institution mentioned the information signifies monetary misery is on the rise, notably amongst youthful and lower-income Individuals.
Whole family debt grew by $212 billion, rising to $17.5 trillion within the fourth quarter of 2023, the Fed’s quarterly report on family debt and credit score reveals.
Bank card balances rose by $50 billion to hit a document $1.13 trillion. Inflation and better rates of interest are contributing to rising bank card debt, leading to extra Individuals struggling to pay down their bank card balances, in line with Bankrate’s senior trade analyst Ted Rossman.
“We’re seeing extra individuals carrying extra debt for longer intervals of time,” Rossman mentioned in an emailed assertion. “For instance, 49% of credit score cardholders carry debt from month to month, up from 39% in 2021.”
Right here was the Biden admin’s response to the brand new report:
.@FoxBusiness’s @EdwardLawrence: “The New York Federal Reserve simply launched a report at present saying that Individuals have $1.13 trillion in bank card debt, which is now one other document. Is there an affordability disaster? ”
KJP: “So, look, what we have now been seeing, as you recognize, from… pic.twitter.com/sopDQdIZDD
— Curtis Houck (@CurtisHouck) February 7, 2024