U.S. consumers collectively owe an eye-popping $1.17 trillion in credit card debt — a record — according to estimates the Federal Reserve Bank of New York released this week.
But while there are still major financial risks for carrying hefty balances, the researchers said the data suggests that “rising debt burdens remain manageable” for the typical consumer.
Prices are still going up, but they’re not going up as fast, and incomes are once again going up at a faster rate than expenses.
Earnings growth has averaged 6.2% per year since the pandemic began, compared to the cumulative debt balance rising 4% per year.
“Especially for higher-risk borrowers, credit card and auto loan delinquencies are the highest in a dozen years, and that’s with unemployment at 4%.
Persons:
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Organizations:
’ paychecks, Federal Reserve Bank of New York, New York Fed, Commerce Department, Bureau of Labor Statistics, Bankrate
Locations:
’ paychecks . U.S