Money Control Place
  • Politics
  • Business
  • Stocks
  • Investing
  • Politics
  • Business
  • Stocks
  • Investing

Money Control Place

Business

Credit card balances jump and are above $1 trillion for the first time

by August 10, 2023
August 10, 2023
Credit card balances jump and are above $1 trillion for the first time

Americans increasingly turned to their credit cards to make ends meet heading into the summer, sending aggregate balances over $1 trillion for the first time ever, the New York Federal Reserve reported Tuesday.

Total credit card indebtedness increased by $45 billion in the April-through-June period, an increase of more than 4%. That took the total amount owed to $1.03 trillion, the highest gross value in Fed data going back to 2003.

The increase in the category was the most notable area as total household debt edged higher by about $16 billion to $17.06 trillion, also a fresh record.

As card use grew, so did the delinquency rate.

The Fed’s measure of credit card debt 30 or more days late rose to 7.2% in the second quarter, up from 6.5% in Q1 and the highest rate since the first quarter of 2012 though close to the long-run normal, central bank officials said. Total debt delinquency edged higher to 3.18% from 3%.

“Credit card balances saw brisk growth in the second quarter,” said Joelle Scally, regional economic principal within the Household and Public Policy Research Division at the New York Fed. “And while delinquency rates have edged up, they appear to have normalized to pre-pandemic levels.”

More from CNBC

Moody’s cuts ratings of 10 U.S. banks and puts some big names on downgrade watch Boeing aircraft deliveries fall in July as company plans to raise output Philadelphia Fed President Patrick Harker suggests interest rate hikes are at an end

Fed researchers say the increase in balances reflects both inflationary pressures as well as higher levels of consumption.

The central bank also said demand for card issuance has eased, which has come in conjunction with banks saying that credit standards are tightening.

Debt across other categories showed only modest changes. Newly originated mortgages rose by $393 billion though total mortgage debt nudged lower to just over $12 trillion. Auto loans increased by $20 billion to $1.58 trillion and student loans decreased to $1.57 trillion ahead of the lifting of the moratorium on payments.

This post appeared first on NBC NEWS
0
FacebookTwitterGoogle +Pinterest
previous post
Price hikes loom for consumers with the loss of Yellow trucking
next post
Outstanding Lithium in Soils Confirm Multiple High-Priority Drill Targets Morrissey Hill, Yinnetharra, W.A.

Related Posts

More Green Dot Bank customers say they can’t...

August 27, 2023

Ikea says products will be delayed due to...

December 22, 2023

Money worries push some shoppers to tighten budgets...

November 25, 2023

Social Security recipients are on track to receive...

June 16, 2023

OpenAI introduces Operator to automate tasks like vacation...

January 24, 2025

Streaming overtakes cable and broadcast as the most-watched...

June 19, 2025

Trial of former FTX head Sam Bankman-Fried set...

October 3, 2023

Boeing’s latest 737 Max failure narrowly avoided tragedy...

January 10, 2024

Employment among people with disabilities hits post-pandemic high

July 8, 2023

Supreme Court Justice Samuel Alito sold Bud Light...

May 22, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Breakout Watch: One Stock in Each Sector to Watch Now

    • Small Caps Are Rotating In — Here’s Why It Matters

    • Want Faster, Lower Risk Trades? Use This Setup

    • The Seasonality Trend Driving XLK and XLI to New Highs

    • Copper Soars to All-time High as Trump Unveils 50 Percent Tariff on Imports

    • Apollo Silver; Right Assets, Right Management and Right Time

    Categories

    • Business (1,283)
    • Investing (2,658)
    • Politics (3,699)
    • Stocks (1,709)
    • Uncategorized (20)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: MoneyControlPlace.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 moneycontrolplace.com | All Rights Reserved