WASHINGTON—Credit card debt crossed the $1-trillion threshold in the U.S., joining auto loans and student debt in hitting numbers with 12 zeros, and rising to its highest mark since the nation's last recession.
“The new data from the Federal Reserve marks the latest sign of a growing appetite for household debt. Rising consumer borrowing is often a positive sign for the U.S. economy as it typically means consumers are spending more on big-ticket items, such as cars, and smaller purchases often charged on cards,” the Wall Street Journal reported.
While concern exists over auto lending to risky borrowers and defaults on student loans, the quality of most credit card debt remains strong, the Journal stated.
New Federal Reserve data show that U.S. consumers now owe $1.0004 trillion on credit cards, up 6.2% from a year ago and 0.3% from January. It is also the highest amount since January 2009, the Journal noted.