Credit card debt climbs to a record $1.29 trillion, New York Fed research finds

Credit card balances climbed to a record $1.29 trillion, according to New York Fed research, as elevated prices pushed households to lean on revolving debt to cover expenses. The milestone underscores how persistent inflation is straining consumer budgets and reshaping household balance sheets. The New York Fed data point matters because consumer spending drives roughly two-thirds of U.S. economic activity, making card balances a key gauge of financial stress. Economists and policymakers will watch delinquency rates and upcoming retail sales and inflation data for signs of whether households can keep servicing the debt.