U.S. credit card debt climbed to a new record by the end of the fourth quarter, reaching $1.28 trillion, according to new data released Tuesday by the Federal Reserve Bank of New York.
That marks a $44 billion increase in just three months.
The numbers show that many Americans are leaning more heavily on credit cards as household budgets remain under pressure. Higher living costs, borrowing expenses, and everyday bills appear to be pushing more consumers to rely on revolving credit.
On a yearly basis, balances are up 5.5% compared to the same period in 2023. That steady rise highlights how credit card debt continues to grow even as interest rates remain elevated.
The data comes from the Fed’s quarterly Household Debt and Credit Report. This report tracks major categories of consumer borrowing across the country, including mortgages, auto loans, student loans, and credit cards.
While mortgages make up the largest share of total household debt, credit cards are often seen as a key signal of short-term financial stress. Unlike mortgages or student loans, credit card debt usually carries higher interest rates and is often used to cover daily expenses.
The latest figures put credit card balances at their highest level on record for American consumers. Analysts say the continued increase reflects a mix of inflation pressures, higher borrowing costs, and ongoing strain on household finances.
Credit card debt is just one piece of the broader household debt picture, but its rapid growth remains closely watched by economists and policymakers as they assess the overall health of the U.S. economy.
