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U.S. Credit Card Debt Hits Jaw-Dropping New Record

The increase in debt reflects the financial squeeze Americans are feeling.

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Americans are drowning in credit card debt, according to new data from the Federal Reserve Bank of New York. Credit card balances rose by $22 billion in the third quarter of this year, reaching a record $1.29 trillion. Balances are up 4.2 percent from last year. Total household debt, including mortgages, auto loans and student loans, also surged by $334 billion from July to September, reaching a record $19.1 trillion. “Overall debt has been growing,” the New York Fed researchers said on Tuesday. “This does reflect financial hardship out there.” The average consumer now owes $6,678 in credit card debt. People often turn to credit cards because they are easier to obtain than other types of loans, even though they often have some of the highest interest rates among consumer debt. “Credit cards continue to be one of the most expensive ways to borrow,” said Charlie Wise, TransUnion’s senior vice president. However, Americans have few options as the cost of living continues to climb, with essentials such as groceries and gas remaining expensive.