Credit card balances jump and are above $1 trillion for the first time

According to the Federal Reserve, U.S. consumer credit card balances jumped to a record $1.03 trillion in June, surpassing the previous record set in April of $1 trillion. This marks the first time that Americans’ credit card balances have surpassed the $1 trillion milestone. The increase in credit card debt is primarily due to the coronavirus pandemic, which has caused widespread layoffs and economic disruptions. Many Americans have relied on their credit cards to pay for necessities, leading to a surge in balances as households try to make ends meet. This increased amount of debt could present challenges for many households in the near future, as they may be unable to pay back this debt due to the pandemic's damage to the economy. Without further government aid, many Americans may soon find themselves unable to cover their credit card payments.