The Investment Whisperer
  • Business
  • Politics
  • Investing
  • World
  • Business
  • Politics
  • Investing
  • World

The Investment Whisperer

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
Russia says Ukrainian troops crossed into its territory and launched ‘massive attack’
next post
Why ‘wardrobing’ retail fraud soars in the summer

Related Posts

Elon Musk’s Starlink brings internet — and politics...

October 4, 2024

Peloton launching resale market for used bikes, treadmills

June 4, 2025

Trademark dispute emerges over Tiger Woods’ new logo

October 1, 2024

Employers added 206,000 jobs in June, as sturdy...

July 9, 2024

Trump’s massive 46% Vietnam tariffs could hit Nike,...

April 3, 2025

Dow rallies more than 500 points to record,...

December 14, 2023

Gold bars are selling like hot cakes in...

May 11, 2024

How the New York Mets can justify paying...

December 12, 2024

It wasn’t the endless shrimp that pinched Red...

May 27, 2024

’60 Minutes’ producer leaves show, citing a loss...

April 24, 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.

    Categories

    • Business (1,560)
    • Investing (4,346)
    • Politics (5,761)
    • World (4,762)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: TheInvestmentWhisperer.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 © 2024 TheInvestmentWhisperer.com | All Rights Reserved