Debt struggles are hitting consumers at all income levels — it’s a ‘tipping point,’ expert says

As credit card debt ticks higher, there are more signs that consumers — even those with higher incomes — are struggling to manage their balances.

Credit card debt hit $1.21 trillion in the second quarter, in line with last year’s all-time high, according to the Federal Reserve Bank of New York. The total is up 2.3% from the previous quarter.

While lower-income Americans are most likely to struggle with the higher costs of everyday items, a new set of surveys from the National Foundation for Credit Counseling found that over the past six months, debt issues have been affecting a growing number of Americans across all income levels.

“It really doesn’t matter on the income level,” said Mike Croxson, CEO of the NFCC, an organization of non-profit credit counseling agencies. “It’s really about the debt level. Because when you reach the tipping point that the interest expense exceeds what you can afford to pay, that’s what gets the consumer into trouble.”

The NFCC survey of 2,010 U.S. adults aged 18 and older, conducted by Harris Poll, was released in April, then updated after a follow-up survey of 2,089 individuals in early August.