Americans could hold nearly $1 trillion in collective credit card debt before the end of the year, thanks to inflationary rises in everyday costs and interest rates.
For the second quarter of 2022, Americans’ credit card debt rose 13 percent from the same period last year to $887 billion, according to the Federal Reserve Bank of New York. Households saw a 2 percent increase in total household debt in the second quarter of 2022, increasing by $312 billion to $16.15 trillion, the New York Fed said.
Mortgage balances rose by $207 billion in the second quarter and stood at $11.39 trillion at the end of June.
In the third quarter of 2022, more consumers turned to unsecured personal loans and credit cards as a way to help stave off the financial pressures brought on by inflation, according to the Quarterly Credit Industry Insights Report by TransUnion, a consumer credit reporting agency.
Read more at Newsweek.com