Credit Card Debt Hits New High as Delinquencies Rise Amid Inflation and Job Losses
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Credit card debt hit a new record high of $1.08 trillion at the end of September, up 4.6% from the previous quarter.
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Delinquencies on credit card, student, and auto loans also rose, with 3% of outstanding debt in some stage of delinquency.
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Higher delinquencies could be due to overextension by lenders and borrowers, job losses, high inflation straining budgets.
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Average credit card APR hit a record 20.72% last week, making debt repayment costly.
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Total household debt rose to $17.29 billion, up $228 billion from end of June, with inflation creating financial pressures.