US household debt hits new record

Data from the Federal Reserve Bank of New York shows that total credit card debt in the US increased by $45 billion in the second quarter of 2023, up more than 4% compared to the same period last year.

In the second quarter of 2023, household debt increased by $16 billion, reaching $17 trillion, also a new record. (Photo: Reuters).

The aforementioned increase in debt has brought the total amount of outstanding credit to $1.03 trillion. This figure reflects strong consumer spending by Americans, as well as higher prices due to inflation.

Notably, also in the second quarter of 2023, household debt increased by $16 billion, reaching $17 trillion, also a new record. Meanwhile, overdue credit card debt also reached its highest level in 11 years.

Officials said the Federal Reserve's measure of credit card debt that is 30 days or more overdue increased from 6.5% in the first quarter of 2023 to 7.2% in the second quarter of 2023. This is the highest rate since the first quarter of 2012.

Commenting on these figures, Elizabeth Renter, a data analyst at the personal finance website NerdWallet, stated that overdue credit card payments are on the rise.

"This is a sign that consumers are being affected by rising prices while their savings have decreased significantly compared to a few years ago. As credit card usage increases, so does the rate of delinquent debt," she said.

Source: https://baoquocte.vn/no-ho-gia-dinh-tai-my-dat-ky-luc-moi-237890.html