U.S. Credit Card Debt Hits Record Amid A Deepening 'K-Shaped' Economy

Benzinga

U.S. credit card debt hit a record $1.23 trillion, with average balances rising to $6,523 and interest rates near 20%. TransUnion data shows a widening split between superprime and subprime borrowers as higher-income households benefit from markets while lower-income families struggle. Economists warn elevated rates and the ongoing shutdown could intensify financial pressure.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:02America's credit card debt surged to a record $1.23 trillion in the third quarter,

00:07up $24 billion from the previous quarter, according to CNBC.

00:10Average balance per customer rose to $6,523,

00:14while about 63% of cardholders carry a revolving debt with interest rates near 20%.

00:19TransUnion data shows a growing split among borrowers,

00:22with more consumers classified as either superprime or subprime,

00:26showing a widening gap in an increasingly divided credit risk landscape.

00:29Experts say the so-called K-Shap economy has deepened.

00:32It's higher-income households gained from stock market rallies and rising home values,

00:36while lower-income families face growing hardship.

00:39Nearly 40% of consumers say it's difficult to pay bills on time,

00:42and 67% of those struggling cite insufficient income.

00:45Economists warn that the combination of elevated interest rates, inflation,

00:48and the ongoing government shutdown could amplify pressure on at-risk households.

00:53For all things money, visit Benzinga.com.

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