Credit card debt in the U.S. has reached a record $1.08 trillion U.S., according to a new report on household indebtedness published by the Federal Reserve Bank of New York.
Credit card delinquency rates are also on the rise in the U.S., according to the New York Fed, especially among the younger millennial generation who are carrying student loan debt.
A separate report from the Consumer Financial Protection Bureau found that more Americans are turning to credit cards to help them cope with the rising cost of living, particularly with food prices and gasoline costs.
More cardholders are carrying debt from month to month and falling behind on payments and ending up in delinquency, said the Consumer Financial Protection Bureau.
Nearly 10% of credit card users in America now find themselves in persistent debt where they are charged more in interest and fees each year than they pay on the principal.
The interest rates charged on credit card have also been rising as the U.S. Federal Reserve has increased rates 11 times in the past 18 months.
The average annual interest rate charged on credit cards in the U.S. is now more than 20%, also an all-time high.
