US Credit Card Debt Reaches Record $1.3 Trillion, Straining Households

As of late 2024, U.S. credit card debt reached a staggering $1.3 trillion, marking the highest level in recorded history, according to the Federal Reserve Bank of New York. This alarming trend is driven by soaring costs of living, stagnant wages, and ballooning interest rates, which now exceed 22% on average. Many Americans are relying on credit cards for basic necessities, with nearly 25% using them to cover medical expenses. The situation is exacerbated by rising delinquency rates, indicating that households are struggling to keep up with payments. Analysts warn that this debt crisis could undermine economic growth and lead to broader financial instability, particularly affecting younger generations and marginalized communities. Experts suggest that ongoing inflation and interest rate hikes will likely continue to push credit card debt to new heights in the foreseeable future.