Goldman Sachs Sends Harsh Warning to U.S. Credit Card Users

American households are feeling the squeeze, and Goldman Sachs says the pressure is structural, not temporary.

When homeownership becomes harder to achieve, it does not just alter spending habits — it can reshape the entire wealth-building journey.

The Federal Reserve Bank of New York released a report showing that credit card balances jumped $44 billion in the fourth quarter of 2025, bringing total credit card debt to $1.28 trillion, Pooja Rajkumari reported for The Street.

Mortgage balances rose even faster, climbing $98 billion to reach $13.2 trillion.

Taken together, the figures point to what Goldman Sachs chief U.S. economist David Mericle calls an “affordability problem.”

In a video this month, Mericle said the biggest pressure point is owner-occupied housing.

“It’s really the cost of financing your own single-family, owner-occupied housing that stands out by historical standards. Prices have risen a lot. Now mortgage rates have risen, and both the down payment as a share of income and the mortgage financing cost as a share of income are quite high by historical standards.”

But housing is not just another line item in a monthly budget.

Mericle emphasized that for many Americans — especially lower-income households — homeownership is often the primary, and sometimes only, path to building wealth.

Beyond finances, housing also serves as a gateway to social mobility, access to stronger school systems, and better job opportunities. When homeownership becomes harder to achieve, it does not just alter spending habits — it can reshape the entire wealth-building journey.