Americans' Record Credit Card Debt Hits $1.21 Trillion

Americans' credit card debt reached a record high of $1.21 trillion by the end of 2024, driven largely by holiday spending and inflationary pressures. The Federal Reserve Bank of New York reports that 10.93% of credit card accounts are over 90 days delinquent, marking the highest delinquency rate since 2012. Despite a slowdown in the rate of debt increase, the average balance per consumer has risen to $6,580, with interest rates exceeding 20%, exacerbating financial challenges for many households. Inflation, while reduced from pandemic peaks, remains above the Federal Reserve's target, adding to household financial strain. Experts suggest that creating a budget and considering options like 0% balance transfer cards or low-interest loans could help manage these rising debts. Overall, total household debt, including mortgages and auto loans, has also increased significantly, totaling $18.04 trillion.