MIAMI–A new analysis has found consumer credit card debt has hit a new high.
WalletHub said it analyzed new Federal Reserve data and found credit card debt hit a record high of $1.27 trillion in May 2024, which is 4% higher than last year after adjusting for inflation, the company said.
“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,” the company stated.
The Findings
Among the findings in the new Credit Card Debt Survey:
- 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 two in three 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,” WalletHub said.
- Debt-Induced Stress: Nearly one-in-four Americans are very stressed about their credit card debt.
- Sights Set on Getting Debt-Free: Four-in-five people say paying their credit card debt is a top priority.
- Human Experts Only: Nearly three in five people don’t trust AI for information about paying off credit card debt.