Consumer News
Credit Card Debt Hits a Record $1.29 Trillion as Families Stretch to Cover Costs
New York Fed data show balances climbing while grocery prices keep rising and fast-food visits fall.
By MEGAN O’BRIENStaff Correspondent · NEW YORK · Nov 10, 12:00 PM · 1 min. read
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.
The pressure is showing up everywhere. Grocery prices rose again, partly because higher energy costs are working their way through the economy, Bloomberg reported. Even McDonald's is feeling it: foot traffic has fallen as more customers struggle with high prices, the Los Angeles Times reported.
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.
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