Americans' credit card debt hits record $1.29 trillion amid rising costs

Americans' credit card debt has reached a record $1.29 trillion in the third quarter, marking a 4.2% increase from the previous year, according to the Federal Reserve Bank of New York's latest household debt report as reported by wonw1280.iheart.com.

The average credit card balance per consumer rose to $6,678, up 2.4% year over year, with the number of people holding credit cards increasing to 178 million, a 2% rise from the previous year, CNBC reported.

Total household debt, which includes mortgages, auto loans, and student loans, also increased by $334 billion from July to September, reaching a record $19.1 trillion, according to the same sources.

Credit cards remain one of the most expensive borrowing options, carrying an average interest rate of about 24%, according to LendingTree, as cited by the reports.

The rise in debt reflects financial pressures from high inflation and borrowing costs, particularly impacting lower-income communities that are struggling more to keep up with payments, according to Axios.

Despite the overall increase in debt, fewer credit card balances are becoming seriously delinquent, indicating some improvement in Americans' ability to manage payments, Axios noted.

These developments come amid political discussions, with Democrats promising to address economic challenges following recent elections, though delivering meaningful relief remains a significant challenge, Axios reported.