Americans' credit debt is approaching $1 trillion
The total debt of Americans on credit cards almost reached a record trillion dollars in 2023. This was reported by the U.S. Federal Reserve System (FED).
Total credit card debt in the United States reached $986 billion, up $250 billion over two years. In the fourth quarter of 2022, the amount of debt increased by $86 billion, the highest quarterly total on record.
The average U.S. household’s debt is now about $10,000, which is also a record. The average interest rate on a new credit card is 24%, the highest recorded rate since Ronald Reagan’s presidency. It is noted that about 46% of cardholders are in debt, up from 36% a year earlier.