U.S. credit card debt has reached an all-time high of $1 trillion, according to new data from the Federal Reserve Bank of New York. The data, which was released on Tuesday, shows that credit card balances increased by $45 billion in the second quarter of 2023, bringing the total to $1.03 trillion.
This is the first time that U.S. credit card debt has surpassed $1 trillion. The previous record was set in 2008, during the financial crisis.
There are a number of factors that have contributed to the rise in credit card debt. One factor is the strong economy. Consumer spending has been strong in recent months, and many people are using credit cards to finance their purchases.
Another factor is rising inflation. The cost of goods and services has been rising in recent months, and this has put pressure on household budgets. Some people are turning to credit cards to cover their expenses.
The rise in credit card debt is a concern for economists. High levels of debt can make it difficult for households to weather economic downturns. If interest rates rise, it will become even more expensive to repay credit card debt.