Record-High Credit Card Debt: A Burden on Consumers and the Economy
The average credit card balance in the US has reached a 10-year high, surpassing $6,000, as inflation and rising costs put pressure on households. Delinquency rates have also increased, indicating that more cardholders are struggling to make payments. The cost of servicing credit card debt has risen significantly, with average annual percentage rates now exceeding 20%. This means that making minimum payments on the average balance would take over 17 years to pay off, incurring over $9,000 in interest. Experts recommend strategies such as balance transfers, refinancing into lower-interest personal loans, or negotiating lower interest rates with card issuers to tackle costly credit card debt.
- Average credit card balances top $6,000, a 10-year high, as delinquencies rise CNBC
- Why U.S. credit card debt is at an all-time high NBC News
- Credit card debt has reached a record high. Here's what it means for the economy. ABC News
- Credit Cards, the Biggest Payment Method: Balances, Burden, Delinquencies, Available Credit: How Are our Drunken Sailors Holding Up? WOLF STREET
- Consumers have been propping up the U.S. economy when no one else could—now the debts are being called and they can't pay their bills Yahoo Finance
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