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2026-05-29 10:54:52
[Americans' credit card debt reaches $1.25 trillion, with delinquency rates hitting a 15-year high] (1) Data from the Federal Reserve Bank of New York shows that the total balance of credit cards in the United States reached $1.25 trillion in the first quarter of this year, the highest since records began in 1999. The proportion of balances overdue for at least 90 days rose to 13.12%, the highest level in 15 years. (2) The average interest rate on credit cards rose from 14.6% in February 2022 to 21% in February this year. Under the double blow of high inflation and high interest rates, more and more Americans are finding it difficult to repay their debts. Data shows that last year, 5.6% of cardholders were overdue for more than 60 days, exceeding the pre-pandemic level. (3) High-income earners are also under pressure: Clark, the hospital operations director with an annual salary of $194,000, has a credit card balance of $15,000. At an interest rate of 26%, the minimum monthly payment can hardly reduce the principal. She has been forced to reduce her social life and even consider part-time work. (4) Low- and middle-income groups are more vulnerable: Medical assistant Megison had a credit card balance of more than $20,000 after her divorce. She was constantly receiving collection calls and once attempted suicide because of this. She eventually sold her house to pay off her debts and developed a repayment plan through a credit counseling agency. (5) Another case: Daniel Horst, a church administrative assistant with an annual income of $40,000, saw his debt balloon to $20,000 due to credit card interest rates rising to 24%-26%, leading to a broken marriage and suicidal thoughts. He later changed jobs and received a raise, and through a non-profit organization, lowered the interest rate to 6%, paying off his debts in two years. (6) The National Credit Counselling Foundation stated that the number of clients in January increased by 24% year-on-year, and the level of default risk was the highest since 2022. Many families are caught in a "survival debt mode," and even those who have paid off their debts are worried that a sudden accident will cause them to incur debt again.
