US Credit Card Balances Fall $25 Billion in Q1 as Household Debt Hits $18.8 Trillion
Updated
Updated · CNBC · May 12
US Credit Card Balances Fall $25 Billion in Q1 as Household Debt Hits $18.8 Trillion
4 articles · Updated · CNBC · May 12
$25 billion came off US credit card balances in the first quarter, lowering them to $1.25 trillion after the usual post-holiday pullback, the New York Fed said.
That decline did not ease the broader debt load: total household debt still rose to a record $18.8 trillion as mortgages, auto loans and home-equity lines increased, while card balances remained 5.9% above a year earlier.
$4.50 gasoline and other essential costs are straining lower-income households most, with New York Fed researchers saying spending has become more bifurcated and delinquencies are showing weakness concentrated among subprime borrowers.
53% of consumers carry card balances to cover essentials, according to Achieve, and 57% of borrowers already behind said they would need at least six months to pay off all credit card debt.
As U.S. debt hits a record $18.8 trillion, is the economy truly stable or heading toward a K-shaped crisis?
With inflation outpacing wages and savings dwindling, is financial security now out of reach for the average American?
Will the upcoming overhaul of federal student loans rescue millions of borrowers or deepen the nation's debt crisis?