According to new numbers from the Federal Reserve, credit card debt has hit an all-time high.

USA TODAY:

Americans’ outstanding credit card debt hit a new record in November, highlighting a more confident U.S. consumer but also flashing a warning signal of potential trouble down the road.

Revolving credit, mostly credit cards, increased by $11.2 billion to $1.023 trillion, the Federal Reserve said Monday. That nudged the figure past the $1.021 trillion highwater mark reached in April 2008, just before the housing and credit bubbles burst. Over the past year, revolving credit has surged by $55.1 billion, or 5.7%, according to the Fed and Contingent Macro Research.

Non-revolving credit, such as auto and student loans, rose by $16.8 billion to $2.8 trillion in November.

Experts say it doesn’t pose the same threat it did in 2008.

The new all-time-high for credit card debt doesn’t pose the risks to the economy that existed in 2008 because incomes are higher, says UBS Credit Strategist Stephen Caprio. The ratio of credit card debt to U.S. gross domestic product is about 5%, compared with 6.5% in 2008, he says.

“It’s a potential early warning sign but not a financial stability issue” for the broader economy, Caprio says.

Still, Caprio notes that credit card delinquencies have increased to about 7.5% from 7% a year ago, underscoring, growing stresses for low-income households in particular. While that’s still below the 15% delinquency rate reached during the financial crisis and the 9% historical average, he says the increase over the past year raises some concerns. With jobs and income growing, the rise isn’t creating significant problems now but it could if the economy and labor market take a downward turn.

“People should make 2018 the year they focus on knocking down their credit card debt,” says Matt Schulz, senior industry analyst for CreditCards.com. With the Federal Reserve continuing to raise interest rates, “that credit card debt is going to grow faster and faster,” siphoning off money Americans should be putting aside for retirement,” Schulz said.

“It’s really important that folks knock down that credit card debt when times are good.”

This is nothing more than personal responsibility. Citizens who own Credit Cards must make sure they don’t spend more than they can afford. Trump can’t control this, the federal government can’t control this, this is on the back of the American Tax Payers.

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