Credit card debt continues to rise in the U.S., as higher inflation and interest rates make it more challenging to keep up with everyday expenses. Total household debt rose to $17.06 trillion in the second quarter of 2023, according to the latest Quarterly Report on Household Debt and Credit by the Federal Reserve Bank of New York. An increase in credit card debt led the way, up by $45 billion to a new high of $1.03 trillion.
This break into trillion-dollar territory for credit card debt continues a recent trend, according to a study by Experian. The analysis found that average consumer credit card debt expanded from $5,315 in 2020 to $5,910 in 2022 - an increase of 13.2%. What's more, average debt levels increased regardless of credit score, with “poor” and “excellent” rated borrowers reporting the largest percentage increases.
