U.S. Consumers Face Record Credit Card Debt Ahead of Holiday Season
U.S. consumers are entering the holiday shopping season with record credit card balances, according to the Federal Reserve Bank of New York's latest quarterly report on household debt and credit. Total credit card debt reached $1.29 trillion in the three months ending in September, marking a $22 billion increase during that period. This figure represents a 67% rise compared to the first quarter of 2021, when pandemic-related restrictions limited spending on activities like travel and dining. The report indicates that total household debt, encompassing mortgages, student and auto loans, credit cards, and home equity lines of credit, climbed by $334 billion in the third quarter, reaching $19.1 trillion. This is $5 trillion higher than at the end of 2019, just before the recession induced by the pandemic. Ted Rossman, principal consumer finance analyst at Money Management International, noted that voters recently expressed concerns about the high cost of living, with prices up an average of 30% since 2019, le...
