According to the Federal Reserve Bank of New York’s latest quarterly report on credit and household debt, credit card debt has hit a new record of $1.21 trillion.
The report stated that credit card balances jumped by $45 billion in Q4 2024, driven by holiday spending, and are now 7.3% higher compared to 2023.
Student loan balances grew by $9 billion, and now stand at $1.62 trillion. Auto loan balances rose by $11 billion, and now stand at $1.66 trillion.
The Fed Reserve researchers told reporters that delinquency rates on credit cards “remained elevated,” at 7.18%, indicating that “borrowers are having some difficulty repaying.”
Despite high borrowing costs, consumer spending continues to remain strong.
“For people who are carrying a balance … a higher interest rate is going to make those balances rise more quickly, it’s also going to make the payments higher on a monthly basis,” the researchers concluded.
The NY Fed’s report also stated that mortgage balances shown on consumer credit reports grew by $11 billion during the fourth quarter of 2024 and totaled $12.61 trillion at the end of December.
By CEO NA Editorial Staff
