American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

‘People are stretched’: Average consumer now carries $6,329 in credit card debt

by admin August 9, 2024
August 9, 2024
‘People are stretched’: Average consumer now carries $6,329 in credit card debt

Credit card debt is on the rise.

Americans now owe a record $1.14 trillion on their credit cards, the Federal Reserve Bank of New York reported Tuesday.

The average balance per consumer stands at $6,329, up 4.8% year over year, according to a separate quarterly credit industry insights report from TransUnion.

Credit card delinquency rates are also higher across the board, the New York Fed and TransUnion found. Over the last year, roughly 9.1% of credit card balances transitioned into delinquency, the New York Fed reported.

Borrowers with revolving debt “are maxing out their credit cards,” said Michele Raneri, vice president and head of U.S. research and consulting at TransUnion, “that’s usually a pretty good indicator that people are stretched.”

“Credit card balances briefly fell in 2020 and early 2021 due to pandemic-related factors,” said Ted Rossman, Bankrate’s senior industry analyst, which included government-supplied stimulus checks and fewer opportunities for spending.

“But since early 2021, credit card balances have rocketed upward by 48%, fueled by a post-pandemic boom in services spending as well as high inflation and high interest rates,” he said.

Consumers have showed a remarkable willingness to splurge on travel and entertainment, a recent report by Bankrate also shows, to recapture the experiences they lost during the Covid years.

“Maybe people can reassess that now,” Raneri said.

The surge in “revenge spending” has now lasted several years, she added. “Maybe there is a way to position it that they can check off some of the things that they feel like they missed and get back to normal.”

Credit cards are one of the most expensive ways to borrow money. The average credit card charges more than 20% — near an all-time high.

“With credit card balances at an all-time high and the average credit card rate hovering near record territory, it’s more important than ever to pay down this debt as soon as possible,” Rossman said.

If you’re carrying a balance, try consolidating and paying off high-interest credit cards with a lower interest personal loan or switch to an interest-free balance transfer credit card, he advised.

This post appeared first on NBC NEWS

0
FacebookTwitterGoogle +Pinterest
previous post
Biden hunkers down in White House with no public events on schedule again
next post
Costco cracks down on sharing membership cards

Related Posts

Volvo posts Q2 operating loss; turnaround plan ‘fully...

July 17, 2025

Franklin Templeton rolls out “EZPZ” Bitcoin and Ether...

February 21, 2025

Salesforce UK chief calls for tailored AI regulations...

October 11, 2024

Why did HEG shares show over 80% decline...

October 18, 2024

Google loses antitrust case over search

August 7, 2024

As Tesla shares struggle in 2025, short sellers...

April 23, 2025

Donald Trump’s 2020 election case intensifies: how will...

October 3, 2024

Dow closes at record high above 40,000 to...

May 20, 2024

Circle stock price prediction: is CRCL a good...

June 6, 2025

India’s Paytm sees losses narrow to ₹208 crore,...

January 20, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • How Donald Trump’s immigration crackdown may tank the labor market

      August 4, 2025
    • Trump’s tariff threat looms over India’s Russian oil deals

      August 4, 2025
    • Trump moves nuclear submarines near Russia: what triggered the move and what’s ahead

      August 3, 2025
    • BOE rate cuts offer little relief as UK households face mounting financial strain

      August 3, 2025
    • Retail investors shift focus to Europe as US valuations stretch

      August 3, 2025

    Categories

    • Business (3,583)
    • Investing (2,703)
    • Latest News (2,031)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved