A report released last week by the Federal Reserve Bank of New York (NY Fed) revealed a new all-time high in American credit card debt, which is set to reach an incredible $1.14 trillion in the second quarter of 2024.
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A separate Q2 report from credit monitoring firm TransUnion found that as credit card debt soared, the average debt per borrower was $6,329.
The rise in credit card debt comes amid a continued rise in the cost of living, with many Americans saying they are struggling to pay for basic items like groceries, rent and utilities.
The New York Fed also announced that 9.1 percent of credit card balances went due last year and that 136,000 new consumers filed for bankruptcy in the second quarter of this year alone.
Credit card debt was the second fastest growing form of debt both annually and quarterly, behind only mortgage debt.
In the second quarter of 2024, credit card debt increased by a whopping $27 billion, and since the second quarter of 2023, it has increased by $111 billion.
According to data from the New York Fed, there has been a significant increase in all forms of debt since President Joe Biden took office in 2021.
In the first quarter of 2021, credit card debt totaled $0.77 trillion, meaning Americans’ credit card debt has increased by about 48.5 percent since President Biden took office.
