WASHINGTON–Consumers racked up $87.3-billion in new credit card debt during 2021, and a Fed interest rate boost in March would cost people with credit card debt an extra $1.6 - $3.2 billion in the next year alone, according to two new reports.
The reports–Credit Card Debt Study and Fed Rate Hike Report–were both released by WalletHub.
Among the findings, according to WalletHub:
Credit Card Debt Study Key Stats
- Consumers racked up $87.3 billion in credit card debt during 2021.
- Credit card debt rose by $74.1 billion during Q4 2021 – the biggest increase ever.
- The average household credit card balance was $8,590 at the end of 2021.
- The average annual increase in credit card debt over the past 10 years is just $48.5 billion.
- The best balance transfer credit cards currently offer 0% APRs for the first 12-21 months with no annual fee and low balance transfer fees.
Credit Card Debt Survey Key Findings
- Return to Pre-Pandemic Spending Habits. Almost half of Americans (47%) say their credit card spending habits went back to pre-pandemic levels in 2022.
- More Debt to Come in 2022. 33 million Americans will have more credit card debt by the end of 2022.
- Less Debt Stress for Men. Women are 35% more likely than men to feel stressed about their credit card debt.
- Personal Finances Managed Better Than Government. 9 in 10 Americans say their personal finances are managed better than the federal government.
- Ready to Do Anything. More than a third (37%) of people with credit card debt say they would do anything to be debt-free.
For more information, go here.
Fed Rate Hike Survey Key Findings
- War Changing Our Spending Habits. 54% of Americans will reconsider their upcoming spending because of the war in Ukraine.
- Inflation Concerns. 88% of Americans are concerned about inflation right now.
- Rates Too High Already. 148 million people think their credit card rates are too high already.
- Most Say Rate Hikes Are Bad. 55% of consumers think rate hikes are bad for their wallet.
For more information, go here.
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