U.S. Household Debt Hits $18.8 Trillion as 13.1% Credit Card Balances Turn Delinquent
Updated
Updated · Newsweek · Jun 2
U.S. Household Debt Hits $18.8 Trillion as 13.1% Credit Card Balances Turn Delinquent
1 articles · Updated · Newsweek · Jun 2
$18.8 trillion in household debt and a 13.1% 90-day credit-card delinquency rate in Q1 signaled rising financial strain on U.S. consumers, even as officials said the late payments pose no broader financial threat.
April inflation accelerated to 3.8% after prices rose 0.6% in the month, while wage growth slowed to 3.6%, erasing real earnings gains for the first time since 2023 as the Iran war lifted energy costs.
Fuel costs since the conflict began on Feb. 28 have added roughly $400 to $450 per household, squeezing budgets and pushing some families to borrow more while savings rates fall back toward 2022 levels.
Consumer spending has held up overall, but Walmart said average fuel purchases fell below 10 gallons for the first time since 2022, underscoring stress among lower-income shoppers.
May confidence data showed sentiment near historic lows—University of Michigan sentiment fell to a record 44.8 and one-year inflation expectations rose to 4.8%—highlighting a widening divide between wealthier and lower-income households.