Graphics show how Americans' total credit card debt reached record high

Credit card debt, the amount owed by all Americans on their credit cards, rose to a record $1.13 trillion at the end of last year, the Federal Reserve Bank of New York reported Tuesday.

Card balances increased by about $50 billion, or 4.6%, in the fourth quarter of 2023.

Credit card delinquencies, the amount of time in which cardholders fall behind in making payments, also increased. The percentage of card delinquencies 90 days or more rose to 6.4% from 4% in the fourth quarter of 2022.

Card debt contributed to the rise in total household debt, the amount owed by all members of a household, which rose to $17.5 trillion, an increase of $212 billion in the same period.

How credit card debt has increased since 2003

The U.S. economy is doing well overall, New York Fed researchers said, but areas exist in which Americans are overextended. Higher prices for food, gas and housing contribute to credit card debt.

The increases in card debt show higher financial stress "especially among younger and lower-income households,” said Wilbert van der Klaauw, a Fed economic research adviser, the Associated Press reported. 

Why has credit card debt increased?

More credit card owners are carrying over debt from month to month, the Consumer Financial Protection Bureau reported in October.

"Nearly one-tenth of credit card users find themselves in 'persistent debt' where they are charged more in interest and fees each year than they pay toward the principal," the bureau said.

About 49% of cardholders were carrying over debt in November 2023, according to a Bankrate study. That's up from 39% in 2021 and 47% in July 2023.

Major credit card companies are setting interest rates far higher than major indexes like the federal funds target rate, the CFPB reported.

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SOURCE USA TODAY Network reporting and research; Federal Reserve Bank of New York; Consumer Financial Protection Bureau; Associated Press; bankrate.com