Broad household debt expanded by $334 billion between July and September to reach a record $19.1 trillion across mortgages, auto loans, and student loans. Credit card delinquency rates have risen in recent years following pandemic-era loosened lending standards. Meanwhile, TransUnion reported that the average balance per consumer climbed 2.4% year over year to $6,678 across 178 million active cardholders. These combined pressures signal mounting strain on borrowers managing the most expensive forms of consumer credit.
Key points
Credit card balances rose 4.2% from a year earlier as consumers relied on borrowing to co…: Credit card balances rose 4.2% from a year earlier as consumers relied on borrowing to cover essential everyday expenses.
Delinquency rates continue to rise among lower-income borrowers whose earnings have faile…: Delinquency rates continue to rise among lower-income borrowers whose earnings have failed to keep pace with persistent inflation.
Individual consumer balances increased to an average of $6,678 across a growing base of 1…: Individual consumer balances increased to an average of $6,678 across a growing base of 178 million cardholders.
Sources checked by our analysis pipeline: 1
Americans are increasingly turning to credit cards as financial pressures mount, new reports show.
Collectively, credit card balances climbed by $22 billion in the third quarter to a record $1.29 trillion, according to the Federal Reserve Bank of New York's latest household debt report, released Tuesday. Balances are up 4.2% from a year earlier.
Total household debt, including mortgages, auto loans and student loans, also expanded by $334 billion for the July-to-September period to a record $19.1 trillion.
"Overall debt has been growing," the New York Fed researchers said on a press call Tuesday. "This does reflect financial hardship out there."
'One of the most expensive ways to borrow'
The average credit card balance per consumer now stands at $6,678, up 2.4% year over year, a separate quarterly credit industry insights report from TransUnion found. The number of people with credit cards rose 2% to 178 million from 174.8 million.
Consumers often turn to credit cards in part because they are more accessible than other types of loans — even though the average interest rate on a new credit card…
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