The increase in Americans' credit card debt was the biggest in more than 20 years, according to the New York Fed.
During the second quarter, Americans added $312 billion to their debt, which the New York Fed called a "pretty sizable" increase.
According to the Federal Reserve Bank of New York, Americans put an extra $46 billion on their credit cards during the second quarter,
and their credit card balances went up by the most in more than 20 years. This shows that decades of high inflation are still having an effect.
Credit card debts went up by 5.5% from the first quarter to the second quarter and by 13% from one year to the next.
Researchers at the New York Fed said that the yearly increase was the largest increase in more than 20 years.
The New York Fed's quarterly report on household debt, which came out on Tuesday, pointed out this trend.
The report said that Americans are having trouble with their finances at a time when people keep talking about a possible recession and interest rates on debt are going up.
Overall, Americans added $312 billion in mortgage and non-mortgage debt during the second quarter. This was a "pretty large" increase,
according to researchers at the New York Fed. In fact, a statement from the New York Fed said that it was the largest nominal increase since 2016.
At the same time, the data showed that more credit cards, car loans, and other debts were not being paid on time.
"There were big increases in mortgage, auto loan, and credit card balances in the second quarter of 2022," said Joelle Scally,
who runs the New York Fed's Center for Microeconomic Data. "This was partly due to rising prices."
"While household balance sheets as a whole seem to be in good shape, we are seeing rising delinquencies among subprime and low-income borrowers,
with rates getting close to what they were before the financial crisis," Scally said. The percentage of people who were 90 days or more late on their credit card payments increased from 3.04 percent to 3.35 percent.
From 1.61 percent at the same time last year, the number of auto loans that were past due went up to 1.81 percent.
During the second quarter, auto loan balances went up by $33 billion because there weren't enough cars for people who wanted to buy them,
so prices went up. Last month, drivers paid more than $48,000 on average for a new car. This was the first time that had ever happened.