Debt Owed by America’s Consumers Hits New Record Of More Than $17 Trillion
As Americans dealt with high inflation and recession fears, they also faced record debt, according to the latest data by the New York Fed. Total household debt increased to $17.05 trillion in the first quarter of 2023, the NY Fed reported. That marked an increase of $148 billion quarter-over-quarter. Overall, America’s debt balance now stands about $2.9 trillion above where it was at the close of 2019, right before the COVID-19 recession. Credit card balances remained flat at $986 billion, the NY Fed said. Nonetheless, credit card debt remains at record highs, according to the Consumer Financial Protection Bureau (CFPB). “Credit cards are one of the most common financial products in our country, providing the bulk of short-term credit for families,” the CFPB said in a post. “Interest rates on credit cards have risen substantially, with average interest rates going over 20%. Given the trends for the 175 million Americans with credit cards, the CFPB estimates that outstanding credit card debt may continue to set records and could even hit $1 trillion.” But credit cards aren’t the only source of debt that is weighing on many Americans. Auto loan balances increased by $10 billion in Q1 2023, the NY Fed found. And mortgage balances increased by $121 billion to reach $12.04 trillion by the end of March. [as reported by Credit & Collection e-newsletter of 5/23/23]