WalletHub analyzed Federal Reserve data released today and found that credit card debt hit a new record high of $1.27 trillion in May 2024, which is 4% higher than last year after adjusting for inflation. With the average credit card APR now even higher than last year, WalletHub projects that credit card debt will increase by $120+ billion by the end of 2024. You can find other takeaways from WalletHub’s latest Credit Card Debt Survey below.
- Summer Debt Lingers: 46% of Americans are still paying down their credit card balance from last summer.
- Forecast Calls for Higher Balances: Nearly 1 in 3 people say they will have more credit card debt by the end of 2024.
- Calls for Legislative Relief: Nearly 2 in 3 people think credit card interest rates above 23% should be illegal (the average interest rate is currently 22.76%).
- Wasting Money on Interest: 45% of Americans charge everyday purchases to credit cards they carry debt on. This is a fundamental mistake, as they end up paying interest on purchases they can afford to pay in full.
- Debt-Induced Stress: Nearly 1 in 4 Americans are very stressed about their credit card debt.
- Sights Set on Getting Debt-Free: 4 in 5 people say paying their credit card debt is a top priority.
- Human Experts Only: Nearly 3 in 5 people don’t trust AI for information about paying off credit card debt.
“Along with things like sunscreen, coolers and swimsuits, an alarming number of Americans are bringing old credit card debt to the beach with them this summer. A new WalletHub survey found that 46% of people are still paying off credit card debt from last summer, and our research has also shown that people are not eager to give up their vacations to help cut costs. U.S. consumers do want to pay off their credit card debt. They just can’t seem to get any momentum. Four in 5 people say that paying their credit card debt is a top priority, according to WalletHub’s survey, and nearly 1 in 4 people claim to be ‘very stressed’ about what they owe. Yet around one-third of people expect to have more credit card debt by year’s end. At some point, something has to give. Let’s just hope it doesn’t topple the economy when it happens.”- John Kiernan, WalletHub Editor
More From WalletHub
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- Household Debt Report
- Cities Paying Off the Most Household Debt
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