Americans' Debt Just Exceeded $17 Trillion for the First Time — Here's the Smartest First Step to Fix Your FinancesDebt hit new record balances in nearly every category, the Federal Reserve Bank of New York reported.
ByAmanda Breen•
Americans are seeing increasing amounts ofdebtamid anuncertain economy.
Householddebt balancesreached a new high of $17.05 trillion in the first quarter — shooting up $148 billion from the fourth quarter of last year — the Federal Reserve Bank of New YorkreportedMonday.
Related:How to Manage Personal Credit Card Debt as an Entrepreneur
Debt increases touched nearly every category in the first quarter, but record balances were recorded formortgages, home equity lines of credit, auto loans, student loans, retail cards, and additional consumer loans,per CNN.
One area that didn't see a dramatic uptick? Credit card balances, which held firm at $986 million. But it's not all good news: It's the first time in more than 20 years that credit card debt hasn't decreased, per NY Fed researchers.
Andcredit card debtremains a major threat to Americans' personal finances in the context of increasing interest rates. The average credit card balance clocked in at just over $5,900 in 2022, perExperian, and some Americansreportusing credit cards to cover basic necessities.
Related:How to Lower Your Personal Loan Payments | Entrepreneur
That's why senior industry analyst for Bankrate Ted Rossman says it's worth paying down credit card debt first.
"For the foreseeable future, we're stuck with high credit card rates, high balances, and more people carrying debt," Rossman told CNN. "My advice would be to pay down credit card debt, as quickly and cost-effectively as possible. I know it may be easier said than done, but 0% balance transfer cards are still abundant to pause that interest clock for up to 21 months."
