Americans added an additional $46 billion to their credit card debt during the second quarter amid the ongoing decades-high inflation. Balances saw the most severe increase in over 20 years, according to the Federal Reserve Bank of New York. Credit card debts grew 5.5% from the first to second quarters and 13% year-over-year. The report indicates that Americans are experiencing extreme financial hardship as talk of a potential recession persists and borrowing costs and debts continue to climb. Overall, American’s mortgage and non-mortgage debt increased by $312 billion during the second quarter. This marks the most substantial nominal increase since 2016, according to a New York Fed statement.
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