Posted November 9, 2023
A new report on household debt from the Federal Reserve Bank of New York shows Americans have reached a cumulative $1.08 trillion in credit card debt.
Credit card balances increased by $48 billion to $1.08 trillion in Q3 2023, a spike of $157 billion or a 4.7 percent quarterly increase.
An increase in delinquency rates is a contributing factor in the growth of credit card debt, especially with millennials, according to the New York Fed.
“Credit card balances experienced a large jump in the third quarter, consistent with strong consumer spending and real GDP growth,” economic research advisor at the New York Fed, Donghoon Lee said. “The continued rise in credit card delinquency rates is broad based across area income and region, but particularly pronounced among millennials and those with auto loans or student loans.”
The rise in debt is not secluded to just credit card balances, however. Housing and student loan debts have also experienced growth for the third quarter.
There was $386 billion in newly originated mortgage debt and outstanding student loan debt increased by $30 billion and stood at $1.6 trillion in Q3 2023.
Total household debt rose by 1.3 percent to $17.29 trillion.
View the full news release, here.