U.S. consumer debt continues to climb, with credit card balances rising by $24 billion in Q3 to a new all-time high of $1.23 trillion, up 5.75% year-over-year, according to the Federal Reserve Bank of New York.

The average credit card balance per consumer increased 2.2% year-over-year to $6,523, as reported by TransUnion’s quarterly consumer credit insights.

The big picture: Around 175 million Americans hold credit cards, but approximately 60% carry revolving credit card debt, which typically carries annual interest rates near 20%, making it among the most costly borrowing methods. • The consumer credit risk landscape is increasingly polarized, with rising numbers of borrowers classified as either superprime (credit scores of 780+) or subprime (below 600), indicating a widening divide

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