Americans Owe a Record $1.29 Trillion on Credit Cards. Who Pays When the Fed Hikes?

U.S. credit card balances rose by $22 billion in the third quarter to a record $1.29 trillion, according to New York Fed data, with traders now pricing a possible Federal Reserve rate hike in December that would raise the cost of carrying those balances. The record total masks uneven strain across households, and the trajectory matters because card debt is among the most rate-sensitive consumer liabilities. Watch the December Fed decision and upcoming delinquency and charge-off data for signs of which borrowers absorb the higher interest costs.