U.S. credit card debt hit a record high in the second quarter, and Americans are paying the price — in interest.

Federal Reserve Bank of New York reported Tuesday that credit card debt rose to $1.14 trillion as of the second quarter of 2024. That's a $27 billion increase from the previous quarter and a $111 billion increase from the same time last year. The report was nationally representative, based on a national sample of data drawn from the New York Fed's Consumer Credit Panel.

Connected: Robinhood is offering a credit card for the first time – and it's available in 10-karat gold

Meanwhile, the second quarter of TransUnion Credit Industry Insights Report released Thursday shows the average American now has an average of $6,204 in credit card debt, or 6% more than last year's average of $5,947.

TransUnion reported 545 million credit cards in use in the US in Q2 2024.

Paul Siegfried, senior vice president and head of the credit card business at TransUnion, says there's a difference between how higher-risk and lower-risk borrowers use their credit cards.

“Higher risk borrowers appear to be experiencing more pronounced inflationary pressures and as such, relying more on their cards, evident in increased balances and higher utilization,” he said.

Connected: There are new rules for 'Buy Now, Pay Later' programs — Here's what you need to know

At the same time, TransUnion found that credit card originations, or approvals for new credit cards, mortgages and loans, were down 7% year over year.

“Originations are likely to continue to decline for mid-tier and worse consumers as issuers look to less risky borrowers,” Siegfried said.

According to one Forbes Advisor ReportThe average annual percentage rate (APR) of the credit card is about 27.62% this week.