Record High Credit Card Debt Strains American Finances Amid Inflation

A growing segment of Americans, particularly those in lower- and middle-income brackets, have depleted their savings and accrued substantial credit card debt due to persistent inflation over the last two years. This financial strain is exacerbated for those also juggling student loan repayments, raising concerns about worsening financial health. Credit card debt in the U.S. reached a record high of over $1.05 trillion in the third quarter of 2023, with expectations for further increases. Moody’s has reported rising delinquency and charge-off rates, indicating a significant number of Americans are struggling to manage their debt, with rates surpassing those seen in 2019 and projected to continue rising.