Americans credit card debt has just hit a disturbing record of $1.02 trillion according to the federal reserve. USA Today reported:
Americans’ outstanding credit card debt hit a new record in November, highlighting a more confident U.S. consumer but also flashing a warning signal of potential trouble down the road.
Revolving credit, mostly credit cards, increased by $11.2 billion to $1.023 trillion, the Federal Reserve said Monday. That nudged the figure past the $1.021 trillion highwater mark reached in April 2008, just before the housing and credit bubbles burst. Over the past year, revolving credit has surged by $55.1 billion, or 5.7%, according to the Fed and Contingent Macro Research.
“It’s a potential early warning sign but not a financial stability issue” for the broader economy, UBS Credit Strategist Stephen Caprio says.
“People should make 2018 the year they focus on knocking down their credit card debt,” says Matt Schulz, senior industry analyst for CreditCards.com. With the Federal Reserve continuing to raise interest rates, “that credit card debt is going to grow faster and faster,” siphoning off money Americans should be putting aside for retirement,” Schulz said.
“It’s really important that folks knock down that credit card debt when times are good.”