MIAMI–The new Credit Card Debt Study from WalletHub found consumers paid down $50 billion in debt during the first quarter of 2024 – around 8% more than last year.
Among the other findings in the latest data:
- Improvement From Record High. “Based on the Q1 2024 decline, total credit card debt is roughly $1.26 trillion, which is around 14% better than the inflation-adjusted peak from December 2008.”
- High Average Household Debt. “The average household credit card balance as of Q1 2024 is around $10,479 on an inflation-adjusted basis. That’s $2,152 below WalletHub’s projected breaking point for household finances.”
- High Credit Card Interest Rates. According to WalletHub, “The average credit card interest rate is roughly 23% right now. That makes credit card debt a lot more expensive than it has been in the past 30 years.”
- Rising Charge-Offs. “The credit card charge-off rate increased by 14.25% during Q1 2024, finishing at 4.65%.”
- Early Q2 Returns. “Preliminary data for April shows a 4% increase in credit card debt compared to the same month last year,” WalletHub said.
‘Does Not Look Very Promising’
Regarding the paydown of debt during the first quarter, John Kiernan, WalletHub editor, said, “That’s around 8% better than the first quarter last year, giving us some cause for optimism. Hopefully, this is a sign that people recognize the need for action to deal with the combination of high debt levels, record-high interest rates, and the Fed’s inability to get inflation under control for more than three years. Unfortunately, early Q2 data does not look very promising.”
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