How Much Credit Card Debt Do Americans Hold?
Americans’ total credit card balance rose $45 billion in the second quarter, reaching $1 trillion for the first time ever in 2023, according to Q2 data from the New York Federal Reserve.
This made the yearly average U.S. household $7,951 in credit card debt.
Two major factors contributed to this — one being inflation, which drove up consumer credit card debt by the billions, with a 9.1% peak in 2022. The second was the steady climb in interest rates, increasing already high debts.
Bombarded with tempting offers on a daily basis, even those with high credit scores are at risk. Credit card interest rates are at an all-time high from 16% to 20% according to Bankrate. When the Federal Reserve raised interest rates, credit companies followed. With inflation making the cost of living a struggle, most Americans resorted to credit cards to cover expenses. (Read more from “How Much Credit Card Debt Do Americans Hold?” HERE)
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