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Americans continue to rack up credit card debt, hitting a record $1.14 trillion
U.S. consumers collectively owe a record $1.14 trillion in credit card debt, figures released Tuesday by the Federal Reserve Bank of New York show. That’s $27 billion more than the $1.13 trillion in credit card debt they carried during the second quarter of 2024.
The high tally comes amid concerns of an economic downturn triggered by modestly rising unemployment, and as soaring costs in food, housing and auto rates continue to drain household budgets. Americans have increasingly been relying on credit cards to make ends meet, with 6 in 10 adults, or 60%, using credit cards to buy groceries in 2023, according to a May report by the Urban Institute.
Prolonged debt also plays a factor in the historic amount as more Americans fall behind on their credit card bills. About 7.18% of cardholders fell into delinquency in the second quarter, up from 5% in the previous quarter, Fed statistics show.
“More people are carrying more debt for longer periods of time,” Ted Rossman, senior industry analyst at Bankrate, said in a statement.
Americans paid down some of their credit card debt in 2020, using pandemic-related federal stimulus funds, Rossman noted. But beginning in 2021, credit card balances “rocketed upward by 48%, fueled by a post-pandemic boom in services spending as well as high inflation and high interest rates,” he added.
A 2022 report from CreditCards.com found that 60% of credit card holders had been carrying balances on their cards for at least a year, up 10% from 2021.
Rising interest rates
Compounding the problem is the soaring price of plastic, as interest rates on credit cards also continue to reach record highs. The average interest rate on a new credit card is now at 24.84%, the highest since LendingTree started tracking rates in 2019.
Debt owed on mortgages and auto loans also climbed by $77 billion and $10 billion, respectively, according to the Fed’s data. Total consumer debt grew to $17.8 trillion.
A three-day stock market rout roiling Wall Street is prompting some experts to question whether the Federal Reserve could enact an emergency rate cut before its September meeting. Should that happen, credit card companies could lower their APRs in response, LendingTree credit analyst Matt Schulz told CBS News, providing some relief for borrowers in the months ahead.
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Meet Pesto the Penguin, Australia’s nearly 50-pound baby penguin capturing hearts worldwide with its hefty fluff
An aquarium in Australia is now home to the biggest baby penguin it has ever seen. Pesto, a 9-month-old king penguin, has weighed in at just under 50 pounds — more than the weight of both his parents combined.
Sea Life Melbourne Aquarium has been sharing Pesto’s journey since he hatched on Jan. 30. It didn’t take long for the fluffy baby animal to shock aquarium employees, but also win over their hearts. By April 24, when Pesto was just 3 months old, he already weighed 9.1 kilograms, about 20 pounds. According to the Associated Press, his foster parents Hudson and Tango weigh 11 kg, about 24 pounds, each.
“He eclipses them now, which also makes him look comically large,” Melbourne aquarist Jacinta Early told CBS News’ partner BBC.
By early September, the aquarium said Pesto weighed in at just over 46 pounds, and by the end of the month, the AP said Pesto had reached 49 pounds.
The aquarium says on its website that many factors contribute to Pesto’s “impressive weight.”
“Firstly, his biological dad, Blake, is our biggest and oldest penguin,” the aquarium says on its website. “Secondly, he’s had amazing parents raising him! So, the combination of good genes and good parents explains his current weight, but he will lose a lot of this when he fledges (develops his adult feathers).”
His “very healthy appetite” is also a factor, Early told the BBC. Pesto will eat up to 30 fish that are hand-fed to him ever day.
King penguins are the second-largest penguin species in the world, according to the American Bird Conservancy, and will typically fledge when they’re 14 to 16 months old. While male penguins are usually slightly larger than females, the Australian Antarctic Program says that the average penguin size is far below Pesto’s current size, with peak weights ranging between 10 and 15 kg — 22 to 33 pounds — during courting periods.
“If I poked him, my entire finger would completely [disappear] deep in his feathers,” Early said. “When he does start to fledge, he’ll lose a lot of that baby fluff, and he’ll also lose much of that weight, so he’ll slim down nice and sleek.”
Keepers at the aquarium told the Associated Press they expect him to end up at around 33 pounds after he loses “that really adorable baby fluff.”
Videos the aquarium has posted of Pesto have taken the internet by storm.
Even Katy Perry has joined in on the love for Pesto. In one TikTok that’s racked up more than 4 million views, aquarium staff members are seen dancing with Pesto to one of Perry’s songs. Perry responded, saying she “will come by and get a blessing” before her expected performance at the Australian Football League’s grand final.
“Our chonky King workin’ it,” the aquarium says in another video of the massive baby penguin walking behind one of the adult birds in the enclosure — with a strut that can only be described as a seemingly difficult waddle.
The Associated Press says that Pesto has been the only king penguin to hatch at the aquarium so far this year and the first since 2022. That year, there were just six hatchlings.
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