MIAMI—Expect a $20-billion increase in credit card debt, on an inflation-adjusted basis, when the Federal Reserve releases Q3 data Friday, WalletHub is projecting.
“We are expecting mixed results from the Fed’s latest data on credit card debt,” said WalletHub Editor John Kiernan. “Although WalletHub is projecting a $20-billion increase for Q3 when the final numbers are released, that would actually be a 33% improvement compared to the third quarter last year.
“Similarly, even though the average household owes more than $10,000 to credit card companies, that’s nearly $2,000 below the peak from 2007 when you adjust for inflation,” continued Kiernan. “So, consumers seem to be heading into the holiday season spending more conservatively than they did last year.”
Kiernan also projected that total credit card debt as of Q3 will reach $1.29 trillion on an inflation-adjusted basis, which is around 13% below the record high.
The average household credit card balance as of Q3 2024 is projected to be around $10,755 after adjusting for inflation—$1,961 below the record high.