U.S. Households Piling On Record Credit Card Debt: Fed

As volatility returns to the stock market, American households are facing a different kind of financial strain: record-high credit card debt.

The increase in debt marks a reversal from the pandemic era, when many households paid down balances.

According to the New York Federal Reserve's Report on Household Debt and Credit for Q2 2024, credit card balances rose 2.4% to $1.14 trillion—a 48% increase since Q1 2021, Alicia Adamczyk reported for Fortune.

While delinquency rates for credit card debt and auto loans stabilized in the second quarter, they are still on the rise.

Fed researchers noted that despite much of this debt being considered "high quality," they are monitoring delinquency levels closely, particularly in the 30-to-39-year-old age group, which has shown a higher likelihood of serious delinquency compared to the pre-pandemic era.

The increase in debt marks a reversal from the pandemic era, when many households paid down balances. Now, amid high inflation, high interest rates, and increased consumer spending, Americans are accumulating more debt.

According to a survey by personal finance site Bankrate, half of credit cardholders carry debt from month to month, the highest percentage since March 2020. Furthermore, 60% of those with debt have been carrying it for at least a year.