US credit card debt approaches $1T

 

Credit card debt in the U.S. reached a new record of $986B in the fourth quarter of 2022.  Consumers continue to show robust spending habits despite sharp interest rate hikes and rising prices.  The Federal Reserve Bank of New York's Household Debt and Credit Report shows that the credit card debt owed by Americans jumped by $61B from the previous quarter. Credit card balances reached an all-time high — surpassing the previous record of $927B set in 2019 — after rising by $130B from December 2021 to December 2022. Over 4% of the credit card debt currently owed in the U.S. falls in the "serious delinquency" category, meaning it is owed by borrowers who have failed to pay for 90 days or more. 2022 saw seven consecutive rate hikes from the U.S. Federal Reserve, bringing credit card interest rates to almost 20%.