American Credit Card Debt Hits Record $1.3 Trillion, Poised to Grow Further in Risky Trend

• Americans have $1.3 trillion in credit card debt, an all-time high though not when adjusted for inflation; projected to increase by $120 billion this year • Americans took on 7% less new credit card debt in 2023 but still added $108 billion, well above 13-year average of $40.3 billion
• Americans paid $172 billion in credit card fees last quarter; debt-to-assets ratio is healthy but households less liquid due to housing market • Economists see high debt as sign of confidence but risky; recklessness started in 2021 with excess pandemic savings and pent-up demand • Tips include budgeting, building emergency fund, improving credit, exploring job opportunities, using 0% balance transfer cards, paying costly debt first