This is according to the Federal Reserve Bank of New York, which noted that total credit card debt rose by nearly five percent, or about $45 billion, during the second quarter of 2023 to a new high of $1.03 trillion. This is the highest gross value in Fed data going back to 2003. (Related: Survey: The average American has over $54,000 worth of debt and would do almost anything to get rid of it.)
The Fed noted in its credit report that the rise in credit card balances is a reflection of more robust consumer spending as well as significantly higher prices caused by inflation. As credit card use grew in the previous quarter, so did the delinquency rate.
The Fed noted that the delinquency rate – measured by people whose credit card debt is 30 days or more late in payment– rose to 7.2 percent in the second quarter, up from 6.5 percent in the first and the highest recorded delinquency rate since the first quarter of 2012.