Skip to main content

Americans Have Now Charged Their Way To More Than $1 Trillion Card Debt

 NEW YORK–Americans now collectively owe more than $1 trillion on credit cards.

According to a new report on household debt from the Federal Reserve Bank of New York, total credit card debt rose nearly 5%, or about $45 billion, in the second quarter to a new high of $1.03 trillion.

thumbnail_Credit Cards

Although delinquency rates are still low by historical standards, rising balances may present challenges for some borrowers going forward, particularly when student loan payments resume this fall, according to the New York Fed.

A ’Huge Test’

"The resumption of student loan payments will be a huge test for many cardholders, shrinking the amount they have to devote to paying off card debt and leaving some people simply unable to make minimum payments at all," Matt Schulz, LendingTree's chief credit analyst, told CNBC. "One trillion dollars in credit card debt is staggering. Unfortunately, it is likely only going to keep growing from here."

CNBC noted that after a sharp slowdown in 2020, credit card balances have grown year over year for the past seven quarters, largely due to strong consumer spending in the face of higher prices, the New York Fed researchers found.

‘Brisk Growth’

"Credit card balances saw brisk growth in the second quarter," Joelle Scally, regional economic principal in the New York Fed's research and statistics group, said in a statement. "And while delinquency rates have edged up, they appear to have normalized to pre-pandemic levels."

The average credit card rate is also more than 20% on average, another all-time high.

Comments

Post a Comment

Please no profanity or political comments.

Popular posts from this blog

New Year’s Resolution: Getting Your Estate in Order

        Helping families and their businesses plan for the future     Your Most Important New Year’s Resolution: Getting Your Estate in Order   Happy New Year to all. Every January, millions of Americans resolve to lose weight, exercise more, or learn a new skill. These are admirable goals. But there’s one resolution that matters more than all of them combined—one that most people avoid because it forces them to confront their own mortality. Get your estate in order. Not next year. Not when you retire. Now. The Problem With Tomorrow Here’s what I see constantly...
Post a Comment
Read Complete Article HERE>»

Leasing Set To Surge In 2026?—Credit Unions May Miss Out If They Don’t Move

  CINCINNATI—As credit unions look to revive auto lending in 2026 after a sluggish year, one lending tool may become indispensable: vehicle leasing. With new-car prices still historically high, negative equity rising, and manufacturers fighting for market share, leasing is poised for a major rebound this year—and credit unions that remain on the sidelines risk losing out on strong, recurring loan volume. That’s the message from Scot Hall, executive vice president at  Swapalease.com , who says the economic and market dynamics heading into 2026 are aligning in ways that make leasing not only attractive, but essential. “Prices are up and they’re not coming down anytime soon,” Hall said, noting that inflation, tariffs, supply volatility, and chip-related uncertainty continue to push vehicle pricing higher. “Leasing is a great way to combat that. It’s also a great way to get somebody out of negative equity in a relatively short period of time.” Market Conditions Are Setting the Sta...
Post a Comment
Read Complete Article HERE>»

NCUA Issues 2026 Supervisory Priorities Letter to Credit Unions

Alexandria, VA (January 14, 2026)  ― The National Credit Union Administration (NCUA) today announced its 2026 Supervisory Priorities, which continue the agency’s policy of “No Regulation by Enforcement,” while prioritizing safety and soundness. This policy underscores NCUA’s commitment to providing clarity and transparency in its oversight. The letter outlines NCUA’s priorities for the year and provides information to help credit unions prepare for examinations. This year, the agency will continue to focus on risk-based supervision, tailoring the examination scope to the credit union’s unique risk profile. Key Highlights of the 2026 Supervisory Priorities: Risk-Focused Examinations:  Examiners will concentrate on areas posing the greatest risk to credit union members, the credit union system, and the Share Insurance Fund. Balance Sheet Management and Lending:  With loan performance at its weakest point in over a decade, examiners will review credit risk management practic...
Post a Comment
Read Complete Article HERE>»

A 10% Cap, A Busy Congress, And Big Stakes For Credit Unions This Week

WASHINGTON—Credit union trade groups entered the week in Washington closely monitoring developments after President Trump’s proposal for a nationwide 10% cap on credit card interest rates, even as Congress returns to work on funding, financial services reform, and digital asset legislation. Both the Defense Credit Union Council and America’s Credit Unions say the rate-cap proposal poses an immediate threat to consumers credit unions disproportionately serve, while a fast-moving legislative agenda could shape the industry’s operating landscape for years. DCUC President and CEO Anthony Hernandez said the defense-focused trade group mobilized within hours of the President’s announcement, warning the cap could sharply limit access to credit for junior enlisted servicemembers, young officers with student loan debt, and federal workers already strained by a potential shutdown. Anthony Hernandez Hernandez said DCUC began responding within hours, providing comments to the press Friday night an...
Post a Comment
Read Complete Article HERE>»

Syracuse Fire Department Credit Union

 Congrats, Tonia, on your promotion! ================================================= Remember, you're not alone with  NCOFCU.org Join/Upgrade Check out some of NCOFCU's additional features: First Responder Credit Union Academy Financial Literacy Podcasts YouTube Mini's Blog Job Board
Post a Comment
Read Complete Article HERE>»

What Could Tokenized Deposits Mean for CUs?

WASHINGTON—Noting that the FDIC has expressed support for tokenized deposits as insured bank liabilities, not experimental digital assets, a new analysis offers some insights into what that could mean for financial institutions, credit unions and the market in 2026 and beyond.  As PYMNTS Intelligence pointed out in its report, regulatory clarity reduces risk for banks moving from pilots to live deployments, and large banks and infrastructure providers are already testing real-world tokenized deposit use cases.  “At its simplest, tokenization converts an existing claim into a digital representation on a distributed ledger,” the report explained. “The underlying asset does not change, but the infrastructure that tracks ownership and settlement does. In banking, that distinction is critical. Tokenized deposits do not create new money. They represent traditional bank deposits, issued and redeemed by regulated institutions but designed to operate on modern, programma...
Post a Comment
Read Complete Article HERE>»

IRS Issues Ruling on Federal Credit Unions and COVID Credit

WASHINGTON–The Internal Revenue Service has issued a ruling that credit unions can receive a 2021 COVID Credit, but not 2020. In other words, federally chartered CUs can’t claim the employee retention credit for periods in 2020 but can do so for periods in 2021, because later amendments to the terms of the credit made them eligible, according to the IRS. Specifically, FCUs can’t claim the credit for wages paid after March 12, 2020, and before Jan. 1, 2021. The ruling was issued by the IRS Office of Chief Counsel in a newly released legal  memorandum . According to the IRS, FCUs are able to claim the credit for wages paid after Dec. 31, 2020, and before Oct. 1, 2021, the IRS said. The Employee Retention Credit (ERC) – sometimes called the Empl...
Post a Comment
Read Complete Article HERE>»

NCUA: Unlimited Share Insurance for Credit Unions Set to Expire at Year End

http://www.viningsparks.com/     The NCUA recently issued a Letter to Credit Unions regarding the scheduled expiration of two insurance coverage programs on December 31, 2012.     The Temporary Corporate Credit Union Share Guarantee Program and the unlimited Share Insurance Fund coverage for non-interest-bearing transaction accounts will expire.     On January 1, 2013, NCUA share insurance coverage on deposits in corporate credit unions and non-interest-bearing transaction accounts will be limited to the standard maximum share insurance amount of $250,000. The insurance coverage is currently unlimited.     Credit unions should evaluate their uninsured corporate account holdings and perform appropriate due diligence for credit risk implications. If you have any questions on how this may affect your credit union contact; Vining Sparks a GOLD Sponsor of NCOFCU Lee Chandler Senior Vice President Office 800-78...
Post a Comment
Read Complete Article HERE>»

Another big Fed rate hike is here to battle inflation. Economy hangs in balance!

  With prices rising at their fastest pace in a generation, the Federal Reserve is ratcheting up its fight against inflation. On Wednesday, the Fed raised its benchmark interest rate by an additional three-quarters of a percentage point. This is the fourth time the central bank has raised rates this year. It follows an increase of the same size in June — rate hikes at this pace and magnitude have not occurred since the late 1980s. Despite these fast and furious moves, the central bank has its work cut out for it. Its goal is to rein in inflation without kickstarting a recession. "The labor market is extremely tight, and inflation is much too high," Fed Chair Jerome Powell said at a news conference, where he explained the "unusually large" move up in rates. He and his colleagues are trying to fight inflation by tackling demand. They are pushing up the cost of of credit — what consumers and companies pay to borrow money — and they are trying ...
Post a Comment
Read Complete Article HERE>»

Trump Revives 10% Credit Card Rate Cap Proposal, Offers No Details On Enforcement

WASHINGTON — President Donald Trump on Friday renewed a campaign promise to cap credit card interest rates, calling for a one-year limit of 10% beginning Jan. 20, though he offered no details on how such a cap would be enforced or implemented, Reuters reported. In a post on Truth Social, Trump said he was “calling for a one-year cap on credit card interest rates of 10%,” arguing that consumers have been unfairly treated by credit card companies. The White House echoed the claim on social media but did not provide additional guidance, and did not immediately respond to Reuters’ request for clarification, the news outlet said. Analysts have long said any such cap would require congressional action. While lawmakers in both parties have expressed concern over high credit card rates, Republicans hold narrow majorities in both chambers, and no legislation establishing a 10% cap has been enacted, Reuters noted. Several bipartisan proposals already exist. Senators Bernie Sanders and Josh Hawle...
Post a Comment
Read Complete Article HERE>»