American credit card debt remains at record-breaking heights, according to fresh government data, as consumers turn to plastic amid stubbornly high prices on everyday items and housing.
U.S. credit card debt was $986 billion in the first quarter of this year, according to the latest report on household debt from the Federal Reserve Bank of New York. The balance total was the same as the previous quarter’s record high, but $145 billion more than the same time last year — a more than 17% jump.
“That the debt level remained unchanged is noteworthy since it bucks decades-long historical trends,” Matt Schulz, chief credit analyst at LendingTree, wrote recently. “This report marks the first time since 2001 in which credit card debt didn’t fall in the first quarter.”
“That lack of a decrease may not bode well for Americans’ credit card debt numbers for the rest of the year,” he added. “Thanks to rising interest rates, stubborn inflation and myriad other economic factors, it’s likely just a matter of time before credit card balances surpass $1 trillion for the first time since the New York Fed began tracking.”
Read more at Washingtonexaminer.com
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