Credit Card Debt Hits a Record $1.29 Trillion as Families Stretch to Cover Costs

American families are putting more on the card than ever.

Credit card balances hit a record $1.29 trillion in the third quarter, according to a new report from the Federal Reserve Bank of New York, as households struggle with the cost of living ^[1].

The pressure is showing up everywhere. Grocery prices rose again, partly because higher energy costs are working their way through the economy, Bloomberg reported ^[2]. Even McDonald's is feeling it: foot traffic has fallen as more customers struggle with high prices, the Los Angeles Times reported ^[3].

Kitchen Table tip: if you are carrying a balance, call your card company and ask for a lower rate. It works more often than people think. And pay down the highest-rate card first.

The numbers tell a simple story. Wages are not keeping up with the bills, and too many families are borrowing to bridge the gap.