Record-breaking credit card debt: A deep dive into the US consumer's financial struggles

US credit card balances have reached a record high of $1.08 trillion, increasing by $154 billion from the previous year, the largest yearly leap on record, according to the Federal Reserve Bank of New York. However, a growing number of households are struggling to manage their debt, with delinquency rates on credit cards reaching the highest level since 2011. The rise in credit card debt is attributed to factors such as high inflation, high interest rates, and economic inequality. Additionally, delinquencies in subprime auto loans have worsened, and mortgage originations have fallen. Despite the overall strength of the economy, researchers are investigating the potential causes of the increase in delinquencies.