On Thursday, a report from the Federal Reserve Bank of New York revealed that the total debt of the United States has hit a new record high of $18.04 trillion.
According to ABC News, overall debt in the United States rose by $93 billion in the last quarter of 2024, with half of that amount coming from new credit card debt. As of now, the total credit card debt of the United States is $1.21 trillion, also a new record high.
Researchers with the New York Federal Reserve told reporters on Thursday that credit card debt always increases in the closing months of the year due to Christmas shopping, with those debts expected to go down in the early months of the following year.
The fourth quarter of 2024 also saw an increase in missed credit card bill payments, which are known as delinquencies. There were also increased rates of delinquency for auto loans, resulting in a total of $1.7 trillion in auto loan debt.
“While mortgage delinquency rates are similar to pre-pandemic levels, auto loan delinquency transition rates remain elevated,” said Wilbert van der Klaauw, an economic research adviser with the New York Federal Reserve. “High auto loan delinquency rates are broad-based across credit scores and income levels.
Another major reason cited for the increased credit card debt is the rise in interest rates. Researchers at the Federal Reserve noted that income levels have also been rising to match the increasing debt, which they say is a sign of the economy finally beginning to recover following President Donald Trump’s return to office.
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