U.S. hits record-breaking credit card debt, North Dakota not immune

BISMARCK, N.D. (KFYR) – Have you caught yourself reaching for your credit card more frequently than cash? If so, you’re not alone. Americans’ total credit card balance now sits higher than ever before according to the Federal Reserve Bank of New York.

The Fed reports Americans owe a whopping $1.031 trillion as of the second quarter of 2023. In fact, the balance is the highest it’s been since the New York Fed began tracking credit debt in 1999.

Most credit-tracking sites put our state on the lower end of the debt-owing ladder. But while North Dakota typically skirts the economic extremes the rest of the nation experiences because of our sweeping oil and agriculture industries, local financial experts say credit card debt is one thing we haven’t escaped. Mandan’s Lux Wealth Advisors Managing Partner David Wald says part of the reason is due to the U.S.’s culture of buying the things we want immediately as opposed to saving. He says consumer spending makes up 70% of the nation’s economy. But that habit coupled with inflation means higher debt.

“We’re seeing a lot of people put more monthly bills on their credit card than we’ve seen in a long time. Part of it is people are getting out and doing things. The other part of it is with inflation, they just can’t afford it anymore,” said Wald.

He says this is the first time he’s seeing credit card balances increase over the last three years.

He says we’re also seeing credit card interest rates climbing alongside the Fed’s rate increases. Wald says all of these factors come together and create a situation where there’s more debt that’s harder to get out of.

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