Credit card balances grow to their highest level in 20 years.
The New York Federal Reserve reported that household debt climbed past $16 trillion in the second quarter for the first time ever, with soaring inflation being pushed up by housing and auto balances. Collectively, the outstanding amount owed by Americans totaled $16.15 trillion through the end of June, a 2 percent increase from the previous quarter.
The New York Fed stated, “Americans are borrowing more, but a big part of the increased borrowing is attributable to higher prices.”
In addition to home mortgages and auto loans, credit card balances rose by $45 billion in the three-month period of the last quarter, up 13 percent over the past year. Fed researchers said it was the largest increase in more than 20 years.
Student loan debt remained little changed at $1.59 trillion.
Economists at the Fed also noted that delinquency rates were nudging higher for subprime borrowers at the lower end of the credit scale.
As the Lord Leads, Pray with Us…
- For members of the Federal Reserve Board as they assess the state of the American economy.
- For U.S. officials as they evaluate solutions to inflation and the rising cost of living.
- For Americans who are seeking ways to make ends meet.
Sources: CNBC, Wall Street Journal
