Just as parents go all-in on back-to-school spending, and Americans pay the bills from their summer vacations, the Federal Reserve Bank of New York presented us with an eye-opening number: Americans now owe a record-high $1.14 trillion in credit card debt after the second quarter of 2024.'The fact that credit card balances rose a couple of points in the second quarter is pretty typical,' said Bankrate analyst Ted Rossman.
Economists predict the Federal Reserve will start to lower interest rates in September, but Rossman cautions that one cut won't provide immediate relief.'Let's say the Fed cuts a half a point next month,' he said, 'then the average credit card rate goes from 20.7% to 20.2%. It's not much of a difference.'According to TransUnion, the average credit card debt per borrower is $6,218.