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US credit card debt rises $21bn in Q2 to $1.26tn
The share of balances more than 90 days past due increased to 12.8% early this year, a level last seen in the Great Recession era, according to a New York Fed report.
US credit card balances in the United States climbed close to a prior peak, rising to $1.26tn between April and June, according to a Federal Reserve Bank of New York report published Tuesday.
The report said credit card debt increased by $21bn, or 1.7%, in the second quarter compared with earlier this year. It also found that mortgage and student loan balances saw a small decline, while other debt products rose.
Delinquencies reflected growing household strain, with credit card debt more than 90 days past due rising from 7.6% in late 2022 to 12.8% early this year. Researchers said the pace of new delinquencies has remained stable for about two years.
The overall share of household debt held by people behind on payments fell slightly between April and June to 4.7% of outstanding balances, from 4.8% in the prior quarter. Lucia Dunn, an economics professor emerita at Ohio State University, said high inflation can force households to rely on credit for essentials like groceries and child-related expenses, and she noted that carrying balances carries different risks than paying them off monthly.