12 August 2024
U.S. consumer credit card debt has reached a record high of $1.14 trillion in the second quarter of 2024, according to the Federal Reserve Bank of New York. This represents a $27 billion increase from the first quarter and a 5.8% rise from the previous year. Delinquency rates have also increased, with 9.1% of cardholders in default. Rising inflation and interest rates have exacerbated the situation, with many Americans relying on credit cards to manage expenses. The average credit card interest rate has climbed to 24.84%, contributing to prolonged debt burdens.