The stock market may be hitting record highs, but not all is well for the U.S. consumer. In fact, more Americans are increasingly financially stressed and taking on debt that they cannot pay off, according to a new report from the Philadelphia Federal Reserve.

The share of credit card holders making only minimum payments on their bills rose to 10.75% in the third quarter for 2024, the highest it’s been in 12 years, the Fed’s data shows. That percentage has been on the rise since 2021, amid increasing inflation and higher interest rates.

And total debt is the highest it’s been since 2012, when the Fed started capturing this data. Revolving card balances—the amount left at the end of a billing cycle that is not paid off—stood at $645 billion in the third quarter of 2024, an increase of over 50% since the second quarter of 2021. Total card balances have grown to $914 billion.

At the same time, delinquencies—balances more than 30 days past due—rose to 3.52% of borrowers. While that might not sound like much, it is more than double the delinquency rate of 1.57% in the second quarter of 2021.

“Consumers are not only spending more, leading to higher balances, but paying off less, increasing revolving amounts,” the Fed’s report notes.

The data highlights a growing trend: Owing to an increasing cost of living driven by inflation and rising interest rates, more Americans have been increasingly strapped for cash over the past three-plus years, forcing many to lean on credit cards to get by.

Unfortunately, many households have also spent down any excess savings they accumulated during the earlier days of the COVID-19 pandemic, previous Fed research has found.

“A nasty combination”

Consumer debt levels are now the highest they’ve been since the Great Recession and its aftermath. But things aren’t quite as bad: Then, the delinquency rate soared to nearly 6.8% in 2009.

Credit card debt, though, can be particularly hard for borrowers to get out of, due to high interest rates that currently average around 20%. A recent report from personal finance site Bankrate found some 48% of credit card holders carry a balance. Meanwhile, 57% of those who are in debt have carried that debt for at least a year. Not only are debt levels higher, but consumers are paying more interest on their debt.

“High inflation and high interest rates have been a nasty combination, and while the worst is behind us, the cumulative effects are significant and will linger,” Ted Rossman, Bankrate senior industry analyst, said in a release.

Meanwhile, a similar report from personal finance site NerdWallet found that 48% of Americans who have credit card debt say paying for necessities is a reason they carry a balance. While income has grown around 21% since 2019, food and housing costs—many households’ biggest monthly expenses—are up 27% and 26% respectively, the report finds.