US Credit Card Debt Hits Record $1.08 Trillion Amid Rising Delinquency Rates and Consumer Spending Slowdown

Rising credit card balances indicate increasing consumer dependence on debts as savings diminish post-pandemic, with experts fearing the impact on the US economy if consumer spending continues to slow.

Americans collectively owe $1.08 trillion on their credit cards, the highest amount ever documented, with credit card balances increasing by 4.7% in the three months to the end of September 2023.
Despite this record debt, consumer spending and a strong labor market have remained resilient, allowing the U.S. economy to persevere through 2023 with stronger-than-expected GDP growth.
Delinquency rates on credit card repayments are on the rise, with increasing difficulties in repaying these debts potentially indicating problems for the wider U.S. economy.
Citigroup CEO Jane Fraser and analysts report that consumers, particularly those on lower incomes, are showing more signs of struggle as their savings decrease and interest rates increase.
Uncertainty around consumer resilience has divided analyst predictions for the 2023 holiday season, with some warning that holiday sales may rise at their slowest pace in half a decade.