Leaders.com
  • Login
  • Subscribe
  • Business
  • Leadership
  • Wealth
  • Master Classes
  • Business
    • Entrepreneurs
    • Executives
    • Marketing and Sales
    • Social Media
    • Innovation
    • Women in Business
  • Leadership
    • Personal Growth
    • Company Culture
    • Public Speaking
    • Productivity
    • Hiring
    • Social Issues
    • Leaders
  • Wealth
    • Investing
    • Cryptocurrency
    • Retirement
    • Venture Capital
    • Loans and Borrowing
    • Taxes
    • Markets
    • Real Estate
  • Master Classes
  • Login
  • Subscribe
Loans and Borrowing

(Photo by Artur Widak/NurPhoto via Getty Images)

By Savannah Young Leaders Staff

Savannah Young

Savannah Young

News Writer

Savannah Young is a news writer for Leaders Media. Previously, she was a digital reporter for WATE Channel 6 (ABC)...

Full bio


Learn about our editorial policy

Aug 8, 2022

Inflation Driving Increase in Credit Card Debt

This year the U.S. had the biggest jump in credit card debt in more than 20 years.

Credit card debt surged nationally from April through June as Americans borrowed billions of dollars to continue spending in the face of growing inflation, according to a report from the Federal Reserve Bank of New York.

Credit card balances increased $46 billion in the second quarter, a 5.5% increase from the first quarter. The 13% increase from the second quarter of 2021 to the second quarter of 2022 was the biggest such jump in more than 20 years. There was also an influx of new credit card accounts.

“Americans are borrowing more, but a big part of the increased borrowing is attributable to higher prices,” researchers for the New York Fed said in a news release.

The numbers provide new context for a consumer spending report released by the Bureau of Economic Analysis last week, which showed that spending in June climbed 1.1%. Similar to the New York Fed’s findings, gas prices, which surged past $5 a gallon in many parts of the country in the second quarter, and inflation, which jumped 9.1% year over year in June, were the likely drivers of the increased debt, reports The Washington Post.

The highest increases were mortgage balances, which is in line with the central bank’s raising interest rates to cool down the blazing hot housing market. Auto loans also went up, with balances in the second quarter increasing by $33 billion, on track with increases since 2011, according to the report.

“The second quarter of 2022 showed robust increases in mortgage, auto loan, and credit-card balances, driven in part by rising prices,” Joelle Scally, administrator of the Center for Microeconomic Data at the New York Fed, said in a news release. “While household balance sheets overall appear to be in a strong position, we are seeing rising delinquencies among subprime and low-income borrowers with rates approaching pre-pandemic levels.”

This increase in credit card debt is a reflection of consumers trying to keep up with inflation and high prices on groceries, gasoline and other basic needs. 

Home / News / Inflation Driving Increase in Credit Card Debt
Share
FacebookTweetEmailLinkedIn

Related Stories

Twitter Files And Fake Russian Collusion 

by Tyler Hummel Leaders Staff
Social Media

6 hours ago

Watts

Twitter’s Trust and Safety team discovered a scandal surrounding a think tank’s attempt to label American citizens falsely as Russian bots and spread paranoia about Russian influence—but said nothing.  

Key Details

  • Independent journalist Matt Taibbi, working with Twitter CEO Elon Musk and other journalists like Bari Weiss and Lee Fang, released the 15th official part of the Twitter Files on Friday, January 27. 
  • The newest part reveals that a think tank’s project, Hamilton 68, involved creating a list of supposed Russian bots and using it to propagate fears of Russian collusion. The list was primarily comprised of average American citizens. Twitter saw through the claims but never said anything about it publicly.  
  • “The Hamilton 68 dashboard was a high-level scam to falsely accuse Russian influence behind everything. Their entire opaque system was a fraud, and virtually every media outlet fell for it. Everyone from the New York Times to Mother Jones should post a correction,” says Fang. 
  • “Shame on MSNBC for misleading the public!” tweeted Elon Musk. 
  • See our previous coverage on Part 1, Part 2, Parts 3-5, Part 6, Part 7, Parts 8-10, Parts 11-12, Part 13, Part 14, Lee Fang’s Pfizer coverage, and The Facebook Files.

Go deeper

FacebookTweetEmailLinkedIn

Getting the News From TikTok

by Hannah Bryan Leaders Staff
Social Media

7 hours ago

news from tiktok

A news media startup is looking to gain traction on TikTok and establish itself as the social-media site’s newsroom. 

Key Details

  • Former BBC and News Corp. executives have formed The News Movement, a video news organization. 
  • The company is looking to acquire The Recount, a social media startup on TikTok that garnered millions of views but could not create revenue successfully. 
  • Media companies have used social-media sites in the past to build up their platforms successfully, but a media company has yet to do so on TikTok. 
  • Companies that have used social media to build their brand now struggle as sites like Facebook begin to decline—making investors hesitant to repeat past mistakes. 
  • However, The News Movement CEO Will Lewis thinks he can build a different media company.
  • Rather than focusing on subscriptions or advertising, The News Movement is working to establish itself as a content studio and social media agency. 
  • Already Lewis and editor-in-chief Kamal Ahmed have raised $15 million. 

Go deeper

FacebookTweetEmailLinkedIn

Mark Cuban Predicts the Next Crypto Scandal 

by Tyler Hummel Leaders Staff
Cryptocurrency

7 hours ago

Cuban

Billionaire investor Mark Cuban says that the next big crypto scandal will be the discovery and removal of “wash trading,” meaning that more than half of crypto transactions are illegal. 

Key Details

  • Cryptocurrency investors are entering this year hoping for a better year than the previous one, which saw multiple scandals, collapses, crashes, and the overall decline of crypto and NFT markets. 
  • But investors may not yet be out of the woods. Popular investor Mark Cuban tells The Street that the proliferation of “wash trading,” a form of illegal market manipulation, is making it a matter of time before the next major scandal rocks cryptocurrency. 
  • "I think the next possible implosion is the discovery and removal of wash trades on central exchanges. There are supposedly tens of millions of dollars in trades and liquidity for tokens that have very little utilization. I don't see how they can be that liquid," says Cuban. 
  • An August 2022 Forbes analysis found that “more than half of all reported trading volume is likely to be fake or non-economic."

Go deeper

FacebookTweetEmailLinkedIn
Entertainment

7 hours ago

Trump Partnering With LIV Golf League

by Savannah Young Leaders Staff
Innovation

8 hours ago

ChatGPT Passes Big Exams

by Savannah Young Leaders Staff
Taxes

8 hours ago

The Tax Remote Workers Should Watch For

by Hannah Bryan Leaders Staff

Recent Articles

Wealth

13 hours ago

How to Become a Millionaire: 5 Wealth-Building Tips

Learn strategies for growing your wealth

Wealth

Jan 27, 2023

How to Start Flipping Houses + 4 Mistakes That Could Bankrupt You

Learn how to start flipping houses to make a profit

Personal Growth

Jan 27, 2023

Top 10 Powerful Habits of Successful People for 2023

Try these habits for more life and career success

  • Business
  • Leadership
  • Wealth
Join the Leaders Community

Get exclusive tools and resources you need to grow as a leader and scale a purpose-driven business.

Subscribing indicates your consent to our Terms & Conditions and Privacy Policy

Leaders.com
  • Privacy Policy
  • About
  • Careers
  • Cookie Policy
  • Terms
  • Disclosures
  • Editorial Policy
  • Member Login

© 2023 Leaders.com - All rights reserved.

Search Leaders.com