BIDENOMICS: American Credit Card Debt Soars Past $1 Trillion
No one an afford anything. Ain’t it grand, proles?
US credit card debt surges to more than $1 trillion for first time ever
By Ariel Zilber
The credit card debt held by US shoppers surpassed more than $1 trillion for the first time ever as high inflation continues to drive up costs, according to a report published on Tuesday by the New York Federal Reserve.
Credit card balances grew by $45 billion in the second quarter of this year — rising from $986 billion at the end of the first quarter to $1.03 trillion by the end of the most recent three-month period, the New York Fed data shows.
“One trillion dollars in credit card debt is staggering,” Matt Schulz, chief credit analyst at LendingTree, told Fox Business.
“Unfortunately, it is likely only going to keep growing from here. What’s driving it is inflation, higher interest rates and just generally how expensive life is in 2023.”
The report found that Americans held a total of 578.35 million credit card accounts — a 5.48 million increase from the end of the first quarter.
The credit card limits increased on aggregate by $9 billion to $4.6 trillion, according to the New York Fed.
Americans’ credit card debt hits a record $1 trillion
Americans’ credit card debt levels have just notched a new, but undesirable, milestone: For the first time ever, they’ve surpassed $1 trillion, according to data released Tuesday by the Federal Reserve Bank of New York.
During the second quarter, credit card balances shot up by $45 billion, or nearly 4.6%, to land at $1.03 trillion, according to the New York Fed’s latest Quarterly Report on Household Debt and Credit.
Rising credit card debt and auto loan balances helped to drive overall household debt levels up 1%, to $17.06 trillion for the quarter, the report showed. Overall household debt has spiked by $2.9 trillion since the end of 2019, before the pandemic. The New York Fed’s debt balances are nominal and not adjusted for inflation.
These increases are coming at a time when interest rates have quickly vaulted to a 22-year high.
CNN's Jake Tapper: "I feel like I've been noting this for three years — President Biden is out there heralding such and such, and the American people disapprove overwhelmingly! Three years in, we're still having this conversation!" pic.twitter.com/ODTYFrN9qN
— RNC Research (@RNCResearch) August 8, 2023
Also this:
Cost to own vs rent has not been this out of whack in most people's lifetimes.
1980 was numerically worse, but it's still crazy how it went from a good time to buy, to a horrible time in 2 years 🚨🚨🚨
Ht Reventure Consulting YouTube pic.twitter.com/I8iwf1DDvC
— Wall Street Silver (@WallStreetSilv) August 9, 2023
AUTHOR
Pamela Geller
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EDITORS NOTE: This Geller Report is republished with permission. ©All rights reserved.
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