Americans Have More Credit Card Debt Than Ever

American credit card debt has reached a record $1.25 trillion, fueled by inflation outpacing wage growth and rising interest rates. Households across all income levels are increasingly relying on credit cards to cover basic necessities like groceries and utilities, leading to a surge in delinquencies. Melissa Megison, a medical assistant from Maine, illustrates the human impact of this crisis, detailing how personal challenges and financial strain created a cycle of debt that eventually required professional credit counseling. As interest rates remain at historic highs, many consumers face a compounding "debt snowball" effect where minimum payments become unmanageable. While consumer spending remains strong among those with significant financial means, the growing reliance on credit for survival and the resulting rise in delinquency rates pose significant risks to the broader economic landscape.