2023-08-10 11:22:00
Total credit card indebtedness rose $45 billion in the second quarter
Dubai – Al Arabiya.net
Posted on: August 10, 2023: 03:22 PM GST Last updated: August 10, 2023: 03:36 PM GST
Total credit card indebtedness in America rose by $45 billion, or 4%, in the second quarter of this year, surpassing $1 trillion for the first time in 20 years.
The rise in card use was accompanied by an increase in the late payment rate, as the Fed’s measure of credit card payment delays of 30 days or more rose to 7.2% in the second quarter from 6.5% in the first quarter, the highest rate since 2012.
The most significant increase was in household debt, as total household debt rose by about $16 billion to $17 trillion, which is also a new record.
It is noteworthy that the adjusted household income after inflation and taxes declined by 9% from what it was in April 2020, which puts additional pressure on consumers.
Debt across other categories rose modestly, with new mortgages rising to $393 billion, bringing total mortgages to about $12 trillion.
Auto loans increased by $20 billion in the second quarter, to $1.58 trillion, while student loans fell to $1.57 trillion.
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