US credit card customers are saddled with $1.28 trillion in debt

U.S. credit card balances reached $1.28 trillion by the end of the fourth quarter, marking a $44 billion increase in debt over the three-month period, according to data released Tuesday by the Federal Reserve Bank of New York.

The figures represent the highest level of credit card debt on record for American consumers. The quarterly increase reflects growing reliance on credit cards as household finances face continued pressure.

Year-over-year data showed balances climbed 5.5% compared to the same period in 2023, according to the Federal Reserve Bank of New York report.

The Federal Reserve Bank of New York releases quarterly reports on household debt and credit as part of its ongoing economic monitoring activities. The data tracks various forms of consumer debt including mortgages, auto loans, student loans and credit card balances.

Credit card debt represents one component of total household debt in the U.S., which includes multiple categories of consumer borrowing tracked by federal banking authorities.