Household credit card debt surges in second quarter, highest jump in over 20 years
Credit card debt held by American households surged by 13% on an annualized basis in the second quarter, representing the sharpest climb since 1999 as consumers increasing rely on credit amid sky-high inflation.
The Federal Reserve Bank of New York's Quarterly Report on Household Debt and Credit released Tuesday shows total household debt reached $16.15 trillion at the end of June, an increase of $312 billion from the same quarter a year ago with mortgage, car loan and credit card balances all rising
Mortgage balances climbed by $207 billion to $11.39 trillion, auto loans rose by $33 billion to $199 billion, and credit card balances increased by $46 billion and are now just below pre-pandemic levels, according to the report. Student loan balances, which have been on pause since early on in the pandemic, remained relatively unchanged.
All told, non-housing balances increased by $103 billion (2.4%) from the first quarter, the greatest quarterly increase since 2016.
Household credit card debt surges in second quarter, highest jump in over 20 years | Fox Business