US Credit Card Debt Hits All-Time High of $1.33 Trillion!

American consumers have pushed credit card debt to a record $1.33 trillion, a milestone that signals deepening financial stress across US households. The figure surpasses every prior peak and arrives at a moment when the Federal Reserve's rate-hiking cycle has pushed average credit card APRs above 20% — meaning the cost of carrying that debt is itself at historic highs.

For markets, the number is a double-edged warning. Consumer spending has been the primary engine keeping US GDP out of contraction, but debt-financed spending at record interest rates is structurally fragile. Any softening in employment or income growth could trigger a rapid pullback in discretionary consumption, amplifying downside risk across retail, payments, and broader risk assets.

The data lands in a macro environment already navigating sticky inflation and unresolved fiscal pressure — adding a…