Americans’ credit card and household debt reach new record highs

The level of domestic debt of Americans, including credit card debt, has risen to a high level of all new time in the fourth quarter of 2024, the Federal Reserve of New York reports.

The report showed that the total debt of the household increased by $ 93 billion to $ 18.04 at the end of 2024. Credit card balances At the end of December, it increased by $ 45 billion, reaching 1.21 trillion dollars, which is also a record high.

FREE PRICES FREE 0.1 percentage points to 3.6% to 3.6% from the previous quarter, and the transition of crimes is stable in addition to credit cards. A serious crime that is defined by up to 90 or more days, which is intended for automatic loans, credit cards and HELOC residues, but was stable for mortgage loans.

Is New York sed He noted that before the report shows that the Americans are well-going to the household’s debt management, there are signs that raise rise in rising interest rates.

What is the effect of credit card interest rate cap?

The American debt has reached a new record in the last quarter of 2024. (Spencer Platt / Getty Images / Getty Images)

“In general, consumers are in pretty good condition Household debt The landscape, which is mainly due to mortgage loans and firmly performed, “wrote Fed’s Economic Researchers in the report.

“However, for Car loansHigh prices for higher interest rates have made monthly payments up and put pressure on consumers in income and credit unit spectrum. ” used between new cars, as well as loans and leases. ”

Josh Harsi, Bernie Sanders offers credit card interest rates to 10%

The Americans’ credit card debt reached a high level of all time in late 2024. (ISTOCK / ISTOCK)

Falling used car prices may be tense for borrowers who have purchased a used car when prices are higher, it may be left underwater for those loans, saying New York.

“These shifts have put additional pressure on lower income and lower credit scorers, which have had to prefer higher prices used in the last few years,” researchers wrote.

US Credit Card Defaults to Higher Level In 14 Years

Serious offenses of lower mortgage loans at the end of 2024. (Photographer: David Paul Morris / Bloomberg via Getty Images / Getty Images)

“The prices of used cars originally decreased from the top, leaving some borrowers by potentially by leaving underwater and have been made possible challenge,” added them. “At the same time, the slump of automatic prices may be assumed that the auto loan vineyards will be better likely to fall better as the age of those loans.”

The number of consumers who had Bankruptcy notation Their credit post has been added to the fourth quarter, according to bank data, decline from the third quarter.

Get Fox Business Go by clicking here

Consumers with a third party collection, which have mentioned their credit record, are “relatively stable” in the fourth quarter, the Fed of New York said.