A report from the Federal Reserve Bank of New York (N.Y. Fed) published last week revealed a new all-time high for American credit-card debt, hitting a mindboggling $1.14 trillion in 2024’s second quarter.
A separate Q2 report from credit monitoring firm TransUnion found that as credit card debt skyrocketed, the average debt per borrower reached $6,329.
The increase in credit card debt comes amid a prolonged increase in the cost of living, with many Americans reporting that they are struggling to pay for basics such as groceries, rent, and utilities.
The N.Y. Fed also revealed that over the past year, 9.1 percent of credit card balances became delinquent, and in just Q2 of this year, 136,000 new consumers became bankrupt.
Credit card debt was the second-fastest-growing form of debt, both annually and quarterly, only falling short of mortgage debt.
In Q2 of 2024, credit card debt increased by a staggering $27 billion, while it has increased by $111 billion since Q2 of 2023.
According to the N.Y. Fed data, all forms of debt have seen a significant increase since President Joe Biden took office in 2021.
In the first quarter of 2021, credit card debt was at $0.77 trillion, meaning that since President Biden took office, credit card debt held by Americans has increased by roughly 48.5 percent.
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