Has the US credit card debt reached $1 trillion? (2024)

Has the US credit card debt reached $1 trillion?

Americans have accumulated a record-breaking $1 trillion in credit card debt. This comes as the Federal Reserve's interest rate hikes have caused average interest rates for credit cards to spike to more than 22%. Rates on retail credit cards are even higher, nearing 29% on average.

(Video) U.S. credit card debt reaches $1.08 trillion: New York Fed
(Yahoo Finance)
How much credit card debt exists in the US today?

Credit card debt in America by the numbers

That represents a 4.6% increase in a single quarter, with cardholders shouldering thirteen-figure debt at $1.03 trillion for the first time. In short, that amounts to an average balance of $5,733 per cardholder.

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(WFAA)
Is the government paying off credit card debt?

Unfortunately, there is no such thing as a government-sponsored program for credit card debt relief. In fact, if you receive a solicitation that touts a government program to get you out of debt, you may want to think twice about working with that company.

(Video) Credit card debt top $1 trillion: Here are ways to help pay it off
(CNBC Television)
Why is US credit card debt so high?

Persistent inflation has put many households under financial pressure — more cardholders are carrying debt from month to month or falling behind on payments. Credit card delinquency rates rose across the board, the New York Fed and TransUnion found.

(Video) Credit card debt across U.S. tops $1 trillion, $45 billion added between April and June
(CBS News)
How bad is the US credit card debt?

Americans now owe $1.13 trillion on their credit cards, the Federal Reserve Bank of New York reported Tuesday. Balances jumped 10% from a year ago, according to a separate quarterly credit industry insights report from TransUnion, with the average balance per consumer hitting $6,360, also a historic record.

(Video) US credit card debt hits $1 trillion dollars
(ABC News)
Who profits from interest on credit card debt?

Credit card companies make their profit through a variety of ways. Some of those include: Interest: When cardholders carry a balance on their credit cards by not paying the full amount due each month, they are charged interest on the remaining balance.

(Video) Credit card debt among Americans hits $1 trillion
(KTLA 5)
What percentage of America is debt free?

Around 23% of Americans are debt free, according to the most recent data available from the Federal Reserve. That figure factors in every type of debt, from credit card balances and student loans to mortgages, car loans and more.

(Video) American credit card debt surges to nearly $1 trillion
(9NEWS)
What is the highest credit card debt ever recorded?

That's up from a record $1.079 trillion in the third quarter of 2023, leaving the balance the highest since the New York Fed began tracking in 1999. This marks the third consecutive quarter in which Americans' credit card balances topped $1 trillion, which had never happened before the second quarter of 2023.

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(10 Tampa Bay)
How much does the average person have in credit card debt?

Average credit card debt in America is $7,951, based on 2022 data from the Federal Reserve and the U.S. Census Bureau. Credit card debt varies due to age/income/other factors, but only makes up a fraction of personal debt. The average consumer's debt in America is $95,067.

(Video) Credit card debt hits $1 trillion for the first time in American history
(NewsChannel 5)
Will banks write off credit card debt?

Credit Card Companies Sometimes Write Off the Debt

If you stop paying on your credit card debt and become seriously delinquent, the credit card company will likely write off the debt and consider it uncollectible. At that point, the company takes your debt off its books.

(Video) Why US Credit Card Debt Now Tops $1 Trillion
(CBN News)

How much debt does the average American have?

Average debt levels

The average American in 2023 carried $21,800 in personal debt (excluding mortgages), a whopping $8,000 less than what Northwestern Mutual recorded in 2019.

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How much credit card debt does the average American have in 2023?

Average American Credit Card Debt

The Federal Reserve study does not provide numbers for the average credit card balance per consumer. However, according to recent numbers put out by Transunion, this figure rose from $5,474 in Q3 2022 to $6,088 in Q3 2023.

Has the US credit card debt reached $1 trillion? (2024)
What happens if US national debt gets too high?

Many economists say that a rapidly mounting debt load could soon diminish U.S. economic growth, restrict government spending on important programs, and raise the likelihood of financial crises.

What is the biggest cause of US debt?

Tax cuts, stimulus programs, increased government spending, and decreased tax revenue caused by widespread unemployment generally account for sharp rises in the national debt. Visit the Historical Debt Outstanding dataset to explore and download this data.

What is the average American credit score?

In the U.S., the average credit score is 716, per Experian's latest data from the second quarter of 2023. And when you break down the average credit score by age, the typical American is hovering near or above that score.

How much is the average American family in debt from credit cards?

Average debt by type of debt
Debt typeAverage balance (2023, Q2)Total Balance (2023, Q4)
Auto loan$23,479$1.61 trillion
Credit card debt$6,365$1.13 trillion
Student loan debt$38,290$1.6 trillion
Total debt$103,358$17.50 trillion
1 more row
2 days ago

Why is credit card debt the worst?

Unlike other types of debt, such as a mortgage or even student loans, “credit card debt is not secured by an asset that potentially gains value over time,” said Rod Griffin, senior director of consumer education and advocacy for Experian.

Why is credit card debt bad in a recession?

"Sometimes recessions coincide with rising interest rates, like the one we're seeing now," says Salisbury. "In that case, if you carry any debt with a variable interest rate, then you'll see your costs increase at just the moment it hurts the most."

Why rich people use Amex?

The allure lies in premium benefits, ranging from airport privileges to everyday perks like Walmart Plus memberships or Uber cash. The key is to position the Amex card as not just a financial tool but a lifestyle enabler. This resonates with individuals who seek added value in every transaction they make.

Do credit card companies make money if you pay full?

While credit card issuers don't make money through credit card interest if you pay your balance in full each month, they make money through credit card fees and miscellaneous charges. Credit card networks also charge merchants interchange fees for every purchase you make.

Do credit card companies like when you pay in full?

Yes, credit card companies do like it when you pay in full each month. In fact, they consider it a sign of creditworthiness and active use of your credit card. Carrying a balance month-to-month increases your debt through interest charges and can hurt your credit score if your balance is over 30% of your credit limit.

How many Americans are 100% debt free?

Fewer than one quarter of American households live debt-free. Learning ways to tackle debt can help you get a handle on your finances.

How many Americans live paycheck to paycheck?

Statistics vary, but between 55 percent to 63 percent of Americans are likely living paycheck to paycheck.

How much do most Americans have in savings?

You may need savings for different purposes at different life stages. According to the latest available Federal Reserve data, Americans have a median of $5,300 and an average of $41,800 in transaction accounts.

How many people have $50,000 in credit card debt?

Paying off $50,000 in Credit Card Debt. Running up $50,000 in credit card debt is not impossible. About two million Americans do it every year. Paying off that bill?

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