Credit card debt marches higher as Americans continue to spend
Americans are increasingly turning to their credit cards to cover everyday expenses, with debt hitting a new record high at the end of September, according to a New York Federal Reserve report published Tuesday.
In the three-month period from July to September, total credit card debt surged to $1.08 trillion, an increase of $48 billion, or 4.6% from the previous quarter, according to the report. It marks the highest level on record in Fed data dating back to 2003 and the eighth consecutive annual increase.
“Credit card balances experienced a large jump in the third quarter, consistent with strong consumer spending and real GDP growth,” said Donghoon Lee, a New York Fed economist, in a press release.
There was also an uptick in borrowers who are struggling with credit card, student and auto loan payments. As of September, about 3% of outstanding debt was in some stage of delinquency, up from the 2.7% recorded the previous quarter but still down from the average 4.7% rate seen before the COVID-19 pandemic began.
Credit cards = Bankruptcy !!!!
People are having to eat on credit cards and pay bills.
No Way Out Once the Balance gets too High !!!! Credit cards should be Banned !!!!