Americans’ Credit Levels Surpass $1 Trillion

Credit card balances have increased for five consecutive quarters, continuing to rise at some of the largest rates in 20 years.

Data released on Tuesday by the Federal Reserve Bank of New York revealed Americans’ credit card debt levels have reached a record high.

Debt levels have reached a new milestone by surpassing $1 trillion for the first time ever. Credit card balances have increased for five consecutive quarters, continuing to rise at some of the largest rates in 20 years.

Interest rates feed through from the federal funds rate to interest rates on mortgages and credit cards, which affects everyday consumers. Therefor as interest rates rise, paying that debt becomes more expensive which assisted in pushing past the trillion dollar threshold.

The average credit card is charging consumers a near record 20.53% interest rate.