Credit card debt is surging as average American owes $6,218

Credit card debt in the U.S. has soared to a collective $1.02 trillion, with the average borrower owing $6,218, an 8.5% increase from the previous year. This rise is attributed to high inflation and interest rates, pushing more Americans into financial distress. The New York Federal Reserve reports a significant increase in delinquencies, with serious late payments reaching levels not seen since 2012. Despite low unemployment, the spike in delinquencies remains puzzling, with potential causes including depleted pandemic savings and shifts in the labor market.