Americans have accumulated a record-breaking $1 trillion in credit card debt.
This comes as the Federal Reserve’s interest rate hikes have caused average interest rates for credit cards to spike to more than 22%. Rates on retail credit cards are even higher, nearing 29% on average.
“Even if you’re working and your wages are up, your rent costs more, your groceries cost more, your gas costs more, everything costs more,” said Tedd Rossman, senior industry analyst at Bankrate.com. “So people don’t feel like they’re getting ahead.”
Despite rising costs and higher borrowing rates, a record number of consumers shopped over the Thanksgiving holiday weekend. The National Retail Federation found that more than 200 million consumers hit the stores that weekend, a few more million than the 196.7 million shoppers who turned out in 2022.
However, big box retailers like Macy’s and Nordstrom have issued warnings about a slowdown in repayments on their credit cards over the summer, highlighting a potential risk to retail revenue this holiday season. The resilience of the American consumer will continue to be tested by the still-rising costs of groceries, gas and housing. And, not to mention, the return of student debt payments.
Watch the video above to find out more about how Americans’ credit card debt ballooned past the $1 trillion threshold, and whether U.S. consumers can keep spending enough to keep a looming recession at bay.
13 Water-Resistant Fashion Essentials to Keep You Dry This Spring and Beyond
Bergkamp, Kuyt and Larsson ‘in process’ of English football club takeover
New Falcons head coach Raheem Morris rips team’s quarterback play from last season
Cause of death determined for rider killed in fight with trio on Bronx subway train
NYPD: Driver in custody after crash involving MTA bus in Brooklyn
The Best Moisturizing Body Washes I’ve Tried for My Super Dry Skin
Beyoncé Revealed She’s Dealt With Scalp Psoriasis While Promoting Her New Hair Care Line
People Who Have Had COVID Face a Much Higher Risk of Chronic Fatigue, Study Says
Meghan Markle and Prince Harry Just Fired Back at Critics With 3 Words After Sussex Website Rebrand, Canada Trip
The 5 Best Skin Care Products You Can Buy at Costco, According to a Dermatologist
Margot Robbie Was Worried About Being Typecast After ‘Wolf of Wall Street’
Charles Barkley Addresses His Relationship With Madonna and Reveals if They Really Did Date at One Point
A Major ‘Stardew Valley’ Update Is Coming in March
Paul McCartney Wrote 1 Beatles Song After a ‘Mystical Religious Experience’
Royal Commentators Question if Meghan Markle Is a ‘Lonely Woman’ Deep Down After Breaking Contact With People From Her Past
News21 hours ago
Three key drivers for the Ukraine war in 2024 – Asia Times
Sport15 hours ago
I’m an ex-Prem ace who managed in Sudan & Oman, now my son’s more famous than me
Tech11 hours ago
Updates From The Mandalorian & Grogu, and More
Lifestyle20 hours ago
Gerard Butler’s ‘Has Fallen’ Film Franchise Gets an Event TV Series Makeover in Studiocanal’s ‘Paris Has Fallen’
News11 hours ago
Lawsuit alleges New York doctor died of allergic reaction after eating at Disney World restaurant
Tech24 hours ago
Wendy’s Wants to Start Uber-like Surge Pricing in 2025
Tech22 hours ago
Google Will Relaunch Gemini in a ‘Few Weeks,’ After Its Racial Controversy
Tech23 hours ago
What Is ANC and Why Do I Need It in My Headphones?