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Americans are falling\u00a0deeper into debt<\/a>, but not across the board.<\/p>\n Collectively, credit card<\/a>\u00a0balances rose by $24 billion in the third quarter to $1.23 trillion \u2014 up 5.75% from a year earlier to a fresh\u00a0all-time high, according to a\u00a0new report on household deb<\/a>t<\/a>\u00a0by the Federal Reserve Bank of New York released Wednesday.<\/p>\n The average credit card balance per consumer now stands at $6,523, up 2.2% year over year, a separate quarterly credit industry\u00a0insights report<\/a>\u00a0from TransUnion also found.<\/p>\n However, despite the overall uptick,\u00a0there is a growing divide among consumers, TransUnion found. “Some demonstrate heightened financial resilience while others face mounting challenges,” the report said.<\/p>\n Read more CNBC personal finance coverageRising household debt balances point to worsening ‘K-shaped’ economic divide<\/a>2.8% Social Security COLA for 2026 prompts calls for change to annual increases<\/a>Now is a good time to rebalance, after years of market gains: top advisor<\/a>Donations to hunger relief charities surge amid SNAP crisis: How to give wisely<\/a>With fewer safety nets, ‘robbed’ Gen X is facing a retirement crisis, top advisor says<\/a>States sue Trump over rule limiting student loan forgiveness for public servants<\/a>How to navigate open enrollment as health insurance premiums increase<\/a>Many mutual fund strategies are launching as ETFs: What it means for investors<\/a>These inherited IRA mistakes could reduce your windfall, advisors say<\/a>Layoffs are mounting, making it a ‘challenging time to be unemployed’: expert<\/a>Why travel insurance may not protect you in the government shutdown<\/a>Student loan class action effort: Trump official, credit agencies hurt borrowers’ scores<\/a>Treasury Department: Series I bond rate of 4.03% through April 2026<\/a>Taxpayers may see ‘record tax refund season’ in 2026, analysts say<\/a>Millions face ‘huge sticker shock’ when ACA open enrollment starts Nov. 1<\/a>Here’s the maximum 2026 Social Security full retirement benefit, after 2.8% COLA<\/a>Student loan forgiveness for public servants to be limited under Trump<\/a>Democrats propose increasing VA, Social Security benefits by $200 a month<\/a>CNBC’s Financial Advisor 100: Best financial advisors, top firms for 2025 ranked<\/a><\/p>\n Roughly 175 million consumers have credit cards. While some pay off the balance each month, about 60% of credit card users have revolving debt, according to the New York Fed. That means they pay the equivalent of about 20% a year, on average, on the balances they carry from month to month \u2014 making their credit cards one of the most expensive ways to borrow money.<\/p>\n ‘A divergence in consumer credit risk’<\/p>\n More borrowers are now either superprime, with a credit score of 780 or higher, or subprime, with a credit score below 600, according to Charlie Wise, TransUnion’s senior vice president of global research and consulting.<\/p>\n That’s creating an increasingly bifurcated consumer economy<\/a>. “We are seeing a divergence in consumer credit risk, with more individuals moving toward either end of the credit risk spectrum,” Jason Laky, executive vice president and head of financial services at TransUnion, said in a statement.<\/p>\n Increasingly, consumers now score in the highest and lowest score ranges<\/a>, an earlier report by FICO also found. FICO is the developer of one of the scores most widely used by lenders. FICO scores range between 300 and 850.<\/p>\n In the so-called\u00a0“K”-shaped economy<\/a>,\u00a0some borrowers are in financial distress while others have strengthened their financial position, largely by benefiting<\/a>\u00a0from stock market rallies and appreciating home values.\u00a0<\/p>\n Wealth has risen fastest for those at the very top, other data from the Federal Reserve also shows, as the value of their investment holdings continues to grow. The top 10% of Americans hold over 87% of corporate equities and mutual fund shares<\/a>.<\/p>\n On the other side of the divide, separate studies show large pockets of heightened financial strain.<\/p>\n Inflation, debt and the shutdown: A ‘volatile combination’<\/p>\n Beyond rising debt balances, 38% of consumers said it’s “difficult” or “very difficult” to pay bills on time. Among those falling behind, 67% cite insufficient income, according to a survey by debt management company Achieve released Friday.<\/p>\n The federal government shutdown<\/a>, which has now stretched past a month, has only added to the pressure on low-income families by affecting critical government programs, including\u00a0SNAP food benefits<\/a>.<\/p>\n “The volatile combination of consumer debt, inflation hangover on prices, elevated interest rates and the shutdown could leave a lasting economic impact, particularly for those more at-risk American households struggling to make ends meet,” said Brad Stroh, Achieve’s co-founder and co-CEO.<\/p>\n “Even though they have a job in most cases, their purchasing power is no longer rising,” Mark Zandi, chief economist at Moody’s, said of Americans who are struggling.<\/p>\n Because wage gains have largely not kept pace with stubborn inflation<\/a>, “many are borrowing money to supplement their income and now they are paying interest on that debt,” Zandi said.<\/p>\n “They owe a lot of money, but they own very little,” he said.<\/p>\n![\"How](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/11\/108199452-1758042135344-gettyimages-2235766893-_d1_5692_fucrsiu3.jpeg\")
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