[dcolkitt]

As much as this makes a scary headline, credit card debt is almost exactly in line with wages. From January 2020 to today credit card debt grew 11%.[1] Over the same period nominal wages grew by 16%[2].

So if anything the current US consumers have a healthier ability to service their credit card debt than the already healthy numbers pre-pandemic. This is corroborated by the credit card delinquency rate which is still lower than any single year in pre-pandemic history[3]

Scare headlines like this are good for generating clicks, but ignore the basic reality. Most years credit card debt will hit a new record, because most years total GDP and consumer spending increases.

[1]https://fred.stlouisfed.org/series/CCLACBW027SBOG [2]https://fred.stlouisfed.org/series/CES0500000003 [3]https://fred.stlouisfed.org/series/DRCCLACBS