Collectively, Americans now owe a record $1.21 trillion on their credit cards, according to a new quarterly report on household debt from the Federal Reserve Bank of New York. Credit card balances jumped by $45 billion in the fourth quarter of 2024, driven in part by holiday spending, and are now 7.3% higher than a year ago.

Everyone loves credit card rewards. But sinking into debt to maximize your rewards is one of a few losing strategies experts see from consumers.

Bankrate Chief Financial Analyst Greg McBride says “more and more households [are] relying on credit to bridge that gap where the income stops but the expenses keep going.”

Higher credit card debt could be a sign of consumer confidence. But tariffs from the Trump administration could further inflate prices.

Americans’ total credit card balance hit a new all-time high of over $1.2 trillion, according to a new report from the federal Reserve Bank of New York.

High interest rates, stubborn inflation and continued consumer spending are among the factors that have lifted collective credit card debt to an all-time high of $1.21 trillion, a

Credit-card debt in the U.S. hit another record after an unusually-high increase following the holidays. Debt from credit cards reached $1.21 trillion i