Americans Spending More…Credit Card Balances Rise

Cape Town, South Africa, person with wallet and credit card Getty Images

Credit card balances around the United States have made their biggest jump in more than 20 years.

After more than 2 years of government lockdowns and questionable vaccine and face mask requirements, Americans are spending like never before.

Higher prices caused by ongoing interest rate hikes by the Federal Reserve don’t seem to be stopping consumers from consuming.

The latest report from the Federal Reserve Bank of New York shows credit card debt jumped to 930-billion dollars in the third quarter of 2022 as more Americans rely on them to get by, and use them to splurge on enjoyment they had been denied by government lockdowns and closures during the Covid-19 pandemic.

Credit card balances are up more than 15-percent from last year. And if you don’t pay off that balance, you will pay higher interest rates on the unpaid balance.

This comes as day-to-day expenses, like gas and groceries, keep going up.

A person with a wallet, taking out a credit card.

Photo by Alpha Media USA Portland OR