October 6, 2017
According to the report by Federal Reserve, Americans had $1.021 trillion in outstanding credit card debt in June 2017. This represents the largest amount of outstanding revolving credit in US history and beats the previous record of $1.02 trillion in April 2008.
Americans also hit another debt milestone recently. The New York Federal Reserve recently released a new report showing US collective household debt balances totaled $12.73 trillion in March 2017, surpassing the 2008 peak of $12.68 trillion. Older Americans aged 60 and older are also taking on a greater share of debt than previously, holding 22.5% of total household debt in the fourth quarter of 2016, compared with 15.9% in 2008 and 12.6% in 2003.
This high level of debt is potentially worrying, as this could indicate older Americans might not be saving enough for retirement or to address short-term needs. According to AARP Foundation, while 46% of Americans do not have $400 to meet an extraordinary expense without borrowing the money, 25% of older Americans do not have money in savings to meet a $240 ...