MIAMI—New data on credit card debt is scheduled to be released by the Federal Reserve on Friday afternoon, and WalletHub is projecting an $85 billion annual increase on an inflation-adjusted basis.
“We have a glimmer of hope when it comes to credit card debt. Although U.S. credit card users added around $85 billion in debt during 2024, according to WalletHub’s projections, that’s actually a 24% improvement compared to 2023,” WalletHub said. “Plus, total credit card debt is around 8% below the record high when you adjust for inflation. We can’t celebrate quite yet, but if consumers focus on budgeting, minimizing unnecessary spending and taking a big chunk out of what they owe this year, some festivities will certainly be in order.”
Key predictions from WalletHub:
- 2024 Was Better Than 2023: At $85 billion, the increase in credit card debt during 2024 was around 24% smaller than the increase in 2023.
- Debt Is 8% Below the Peak: Total credit card debt at the end of 2024 was roughly $1.36 trillion on an inflation-adjusted basis, or around 8% below the record high.
- Falling Behind on Payments: Consumers charged-off on roughly $60 billion in delinquent credit card debt during 2024 ($15 billion more than 2023).
- Household Debt Has Some Breathing Room: The average household credit card balance at the end of 2024 was around $11,339 after adjusting for inflation. That’s $1,458 below the record high.