According to the Federal Reserve Bank of New York, US credit card debt has exceeded $1 trillion for the first time. In August, the Fed reported that credit card balances increased by $45 billion, from $986 billion in Q1 2023 to $1.03 trillion in Q2 2023, a 4.6% quarterly increase. Credit card accounts grew by 5.48 million to 578.35 million, and aggregate limits on credit card accounts increased by $9 billion, now standing at $4.6 trillion.
Analysts say increasing balances are driven by still-elevated inflation, continued spending on nonessentials, and a smaller share of borrowers paying off their statements in full. See articles from the Wall Street Journal and Investopedia for more insight on what is causing credit card balances to grow.
