Consumer credit card debt reaches a record high

US consumers collectively owed ~$986 billion in credit card debt at the end of last quarter, per a new report from the Federal Reserve Bank of New York. That’s the highest level since 1999, when this data first started being collected.

And we’re not done yet – credit card debt these days might as well be nicknamed Simone Biles, because it’s setting all the records. Americans’ total credit card debt increased by $61 billion in Q4 2022 compared to the previous quarter, as well as $130 billion year-over-year. Both of which are record highs, per the report.

And yet another thing hitting new highs (besides Snoop Dogg)? Interest rates on credit card debt. The average US rate last quarter stood at 21.6%, which is the highest level since WalletHub began tracking that data in 2011.

🚫📈 Big picture: While credit card debt (and interest) continues to go up, the average US consumer’s ability to pay it back is going the way of Jay Sean – down, down, down, down, down. In Q4 2022, Americans in their 20s, 30s, 40s, and 50s had their highest rate of entering CC delinquency since 2010.

A larger storm may be brewing, too. A separate report from Moody’s Analytics found ~10% of auto loans extended to Americans with low credit scores were at least 30 days behind on payments at the end of last year, the highest share in over a decade.