Americans’ credit card balances climbed to $1.26 trillion in the second quarter, nearing last year’s record high as household finances remain divided.
The Federal Reserve Bank of New York released its quarterly household debt report Tuesday, showing credit card balances increased by $21 billion, or 1.7%, from the previous quarter.
The total is now close to last year’s all-time high of $1.28 trillion.
Delinquencies Remain Elevated The percentage of credit card balances in late-stage delinquency, or more than 90 days past due, stood at 12.8% in the first quarter, up from 7.6% in the third quarter of 2022, according to New York Fed researchers.
"This is a lagging indicator and reflects past charge-off debts that are sticking around on credit reports," the researchers said during a Tuesday press call.
