US credit card balances topped $1 trillion for the first time in the second quarter, according to data from the Federal Reserve Bank of New York. As the U.S. economy recovers from the new coronavirus, consumer credit has expanded further.
Fed’s 8threportCredit card balances rose $45 billion in the April-June quarter to $1.03 trillion, according to Reuters. The percentage of consumers who are behind on payments is also rising.Delinquencies have returned to pre-coronavirus levels, but the last two quarters “seem to show some stabilization,” economists at the Fed said.official blogpointed out.
“U.S. consumers have faced many headwinds over the past year, including rising interest rates, post-coronavirus inflationary pressures, and recent bank failures, but there are few signs of widespread financial distress among consumers. ‘” the economists wrote.
Credit cardholders have additional lines of credit totaling $3.6 trillion.
Auto Loan and Credit Card Balances
US consumers have added more than $1 trillion in aggregate credit card and car loan debt over the past decade
Source: New York Federal Reserve Bank
Total U.S. household debt rose 0.1% to $17.6 trillion in the April-June period, the highest ever in Fed data going back to 2003.
news-rsf-original-reference paywall">Original title:US Credit-Card Balances Top $1 Trillion in New York Fed Data(excerpt)
2023-08-08 16:23:00
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