The financial stress on households rose due to inflation and interest rates in the US, bringing the amount of credit card debt US consumers held at the end of 2023 to a record high. Household debt in the US climbed 1.2% in the fourth quarter of 2023 compared to the previous quarter, reaching $17.5 trillion, according to the Household Debt and Credit Report from the Federal Reserve Bank of New York.
Despite housing loans taking up the highest share in household debt, credit card debt stole the spotlight, as it rose approximately 5% ($50 million) compared to the previous quarter, and around 15% ($143 million) year-on-year, reaching a record high of $1.1 trillion in the fourth quarter of 2023.—AA
