A new report from the Federal Reserve Bank of New York reveals that Americans now owe a record-breaking $1.21 trillion in credit card debt, a figure that has sparked heated criticism of the Biden administration’s economic policies.
The latest data shows that credit card debt increased by $45 billion in just the last quarter of 2024, with a staggering $82 billion year-over-year rise, marking a 7.3% jump.
With over 600 million active credit card accounts in the U.S. and interest rates exceeding 20%, many consumers find themselves trapped in a cycle of high-interest debt, struggling to keep up with rising costs.
Economic experts warn that stubborn inflation has eroded financial stability, leaving many Americans with no choice but to rely on credit cards to cover essential expenses like groceries, utilities, and medical bills.
The broader debt crisis extends beyond credit cards, with total household debt surpassing $18 trillion. Mortgages account for $12.6 trillion, auto loans for $1.65 trillion, and student loans for $1.61 trillion.
Critics argue that Biden’s economic policies have worsened inflation, leading to a cost-of-living crisis that has forced families to take on unsustainable levels of debt just to make ends meet.
Rising debt levels reflect deeper economic strain, with 7% of all credit card balances now classified as seriously delinquent, meaning payments are overdue by 90 days or more.
The rapid increase in credit reliance has raised concerns about the long-term health of the U.S. economy, as more households struggle to manage debt while balancing rising interest rates and stagnant wages.
For many conservatives, the Biden administration’s economic legacy is one of reckless spending and mismanagement, leaving American families saddled with financial hardship that will take years to reverse.
The report’s findings have intensified the political debate over the administration’s handling of inflation and consumer debt, with critics calling it a “final gift” of economic mismanagement.
Economic experts suggest that addressing the crisis will require a mix of monetary policy adjustments, stronger consumer protections, and financial literacy initiatives to prevent further debt accumulation.
With Biden’s presidency coming to an end, the debate over his economic record will likely shape political narratives heading into the next election cycle, as voters express growing frustration over financial instability.
Supporters of the administration argue that inflation control measures are showing progress, though the rapid accumulation of credit card debt remains a major concern for millions of households.
The $1.21 trillion credit card debt milestone underscores the urgent need for comprehensive financial reforms to protect consumers from predatory lending and mounting interest burdens.
Whether seen as a policy failure or a symptom of broader economic challenges, the debt crisis is a stark reminder that financial stability remains a key issue for American families heading into the future.