Washington Examiner

US consumer credit card debt hits $1 trillion milestone.

U.S. Credit Card​ Debt Surpasses ⁤$1 Trillion, Reaching Record ⁣High

The Federal Reserve‌ Bank of⁣ New York recently‌ released ‍its quarterly report on household⁣ debt and credit, revealing a‍ significant milestone in U.S. consumer credit card debt. The total ⁣debt has now exceeded $1.03 trillion, ​marking ‍the highest it has ever been.

While this ⁤news may‍ raise concerns, it’s important to note that ‍the⁣ debt-to-GDP ratio remains relatively⁢ low at 3.7%. However, the increase is still ‌noteworthy, with credit card debt rising by $45 billion or‍ 4.6% ​from the previous quarter.

Experts Warn of Potential Consequences

Economists have been closely monitoring these figures, and‌ the recent trend is causing some alarm. Last year, credit card debt saw a staggering 17% increase, amounting to a jump⁤ of $145 billion. This quarter’s results have failed to show the​ usual decrease, ​raising concerns ​about the future‍ trajectory of credit card balances.

According to Matt ⁣Schulz, chief credit ⁤analyst at LendingTree, “That lack of a decrease ​may not bode well for Americans’ credit card debt numbers for ‍the rest of the‌ year. Thanks to rising ​interest rates, stubborn inflation, and‍ other economic ⁣factors, it’s likely just a matter of time​ before credit card balances surpass trillion for the first time since the New York Fed began tracking.”

Implications for U.S. Household Debt

With ⁣credit card debt reaching this record high, the total U.S. household debt now ​stands ⁤at a staggering $17.06 trillion. This milestone serves as a reminder ‌of the importance of responsible financial management and the‌ need for individuals to stay vigilant in managing their credit card balances.

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