(NewsNation) — Credit card debt hit a new record high at the end of December, and more Americans are falling behind on their payments, according to a New York Federal Reserve report released Tuesday.

Credit card balances surged to $1.13 trillion in the fourth quarter of 2023, up $50 billion from the previous quarter as consumers continue to take on more debt to make ends meet.

The New York Fed’s report found that more people are struggling to keep up. Roughly 6.4% of credit card debt was delinquent by 90 days or more, up from 5.8% the prior quarter. The latest uptick marks a 59% jump from the 4% rate at the end of 2022.

“Credit card and auto loan transitions into delinquency are still rising above pre-pandemic levels,” said Wilbert van der Klaauw, economic research advisor at the New York Fed. “This signals increased financial stress, especially among younger and lower-income households.”

Nearly 10% of the outstanding credit card debt held by 18-to-29-year-olds is 90 days or more past due, New York Fed researchers found. That rate is roughly double what it was two years ago but still below the 14% level observed during the Great Recession.

Carrying credit card debt has become more expensive since the central bank began raising interest rates. Over the past two years, the typical rate on credit cards has jumped from 14.5% to 21.5% — the highest rate since at least 1994.

The Federal Reserve has signaled that its first interest rate cut is likely months away, which means credit card rates may remain elevated for the time being.

In the meantime, consumers will be hoping inflation continues to ease as policymakers try to pull off a soft landing and avoid a recession.