The Blubber

Per ABC News

For the first time ever, US credit card debt climbs to almost $1 trillion dollars. This comes shortly after consumer prices rose by 6.4% during the start of the year compared to a year ago.

To be specific, US credit card debt hit a whopping $986 billion, according to the New York Federal Reserve Bank, which was the highest in history. The increase in total debt comes as the interest rates for those debts also increase.

Credit card interest rates rose to an average of 21.6% in the last three months of last year, per WalletHub. In 2021, during the same period, US credit card interest rates sat at just 18%.

US household debt reached $17 trillion in the last three months of last year after a spike of 2.4%. New York Fed economic research adviser Wilbert Van der Klaauw gave a statement regarding how the credit card debt sounded alarming.

Wilbert van der Klaauw: "Although historically low unemployment has kept consumer's financial footing generally strong, stubbornly high prices and climbing interest rates may be testing some borrowers' ability to repay their debts,"

TransUnion found that over the last three months of last year, the average credit card user had a balance of almost $6,000. Specifically, it sat at $5,805, representing 11% from a year before.

Bankrate.com senior analyst Ted Rossman gave a previous statement to ABC News sharing how insufficient income results in credit card use.

Rossman: "A lot of people may not have enough income coming in to support day-to-day expenses, so it lands on the credit card... That becomes a very persistent cycle of debt, unfortunately."

In the third quarter of 2022, US household debt climbed at its fastest annual pace since 2008, during the Great Depression. Consumer debt for the bottom 90% of US households increased by $300 billion over the last year.

See flow at unusualwhales.com/flow.

Other News:

• US household debt climbed at the fastest annual pace since 2008 in the third quarter
• Consumer Debt for the Bottom 90% of US Households Increased by $300B Over the Last Year

Resources:

ABC News

New York Federal Reserve Bank

WalletHub

New York Fed

TransUnion

ABC News