Credit Card Debt Soars to Record $1.08 Trillion as Delinquencies Rise
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Americans are racking up record high credit card debt, reaching $1.08 trillion in Q3 2022. This is the biggest year-over-year jump since the data started being tracked in 1999.
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Delinquencies on credit card payments are also rising. The share of newly delinquent borrowers rose to 2% in Q3 2022, up from 1.7% earlier in the year.
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When adjusted for inflation, credit card balances are still below pre-pandemic levels. But the rise in delinquencies is concerning as a potential warning sign.
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Many consumers have enough cash to cover balances, but not all. Rising delinquencies amid robust growth suggests some are falling behind.
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If job losses occur, consequences of high debt could be severe. Though not a systemic risk, high credit card debt burdens individuals.