From Time:

The average American’s credit card balance has increased by 8.2% over the last year, standing at an average of $6,400, according to a new report. Over half of all card owners are carrying a balance month to month, amid a period of moderating inflation.

In addition to credit card debt, auto loans, mortgages, and personal loans have all risen year-over-year. The Federal Reserve’s interest rate balancing and inflation have incentivized Americans to rely on credit cards to cover everyday expenses.

Despite the increase in debt, the average VantageScore credit score has improved by five points over the past year, reaching a record high of 701 amid low unemployment levels and the removal of small medical debts from credit reports.



Read more: Credit Card Debt: Average Balance Increases 8% in Past Year