#اخبار_الكريبتو_العاجلة #عملات_رقمية #اقتصاد_رقمي #بيتكوين #استثمار #سوق_العملات_الرقمية #تحليل_سوقي #wct $XRP
Credit card balances in the United States reached a record level of $1.28 trillion in the last quarter of the year, an increase of $44 billion.
Debt levels rose by 5.5% year-on-year, amid the financial pressures facing households.
High interest rates and inflation continue to drive increased reliance on revolving credit.
American consumers ended the last quarter of the year with a balance of $1.28 trillion in credit cards, marking the highest level ever. The Federal Reserve Bank of New York found an increase of $44 billion over the three months, indicating how dependent households have become on revolving credit under increasing pressures.
This is attributed to a general trend towards rising stress levels. High living costs, persistently high interest rates, and inflation have driven people to increasingly rely on credit cards to secure a decent living. Similar trends can be observed in recent consumer financial reports and updates published by macro markets regarding changes in liquidity conditions faced by all sectors.
Debt levels are increasing year after year
Looking at the annual data, we see that credit card balances rose by 5.5% during the same period in 2023. Therefore, this increase is not merely attributed to higher spending due to the season, but rather a rise in absolute levels as savings are depleted, pushing consumers to borrow.
The Federal Reserve Bank of New York collects this data as part of its quarterly report on household debt and credit. The report tracks mortgage loans, auto loans, student loans, and credit cards to measure the overall financial situation. Analysts often compare these figures to broader economic indicators published by the Federal Reserve Bank of New York and summarized by the Federal Reserve System.
Credit cards reflect economic pressures
Credit card debt is often an immediate indicator of stress. Unlike mortgage or auto loans, credit card balances are more affected by income fluctuations and unexpected expenses. When wages do not keep pace with the cost of living, balances accumulate.
Additionally, rising balances increase risks due to high interest rates on credit cards. According to data from FederalReserve.gov, interest rates on revolving credit have risen sharply over the past two years. When borrowing costs increase, consumer debt rises as borrowing becomes more expensive, leading to extended debt repayment periods.
What does this mean for consumers?
The record figure of $1.28 trillion embodies both resilience and risk. It is a positive indicator for the economy, as consumers continue to spend to support ongoing economic growth. However, increasing reliance on credit carries risks and could become a problem for consumers in the future if interest rates remain high and wages do not improve.
Currently, the data reveals an indisputable fact: American households carry more credit card debt than ever before. Policymakers, lenders, and borrowers alike will be closely watching to see whether balances will stabilize or continue to rise in the coming months.$ETH
