WASHINGTON—The U.S. is projected to end 2017 with more than $50 billion in new credit card debt, according to a new forecast.
“That would mean we’d owe over $1 trillion in credit card debt overall,” stated WalletHub, which made the projection.
Following the worst year for credit card debt since the Great Recession, the U.S. started 2017 with a $30.5 billion first-quarter paydown.
“But we borrowed it back and then some during Q2, racking up $33 billion in new debt and another $22.2 billion in Q3. So it’s not a question of whether consumers are weakening financially, but rather how long this trend toward pre-recession habits will last and just how bad it will get,” WalletHub stated.
WalletHub emphasized that as of Q3 2017, outstanding credit card debt is at the second-highest point since the end of 2008.
The $22.2 billion in credit card debt that was added in Q3 2017 is 46% higher than the post-Great Recession average. It also the highest Q3 accumulation since 2007, noted WalletHub.
“We ended 2016 with $87.2 billion in new credit card debt, most for a year since 2007 and 130% above the post-recession average,” stated WalletHub.
Since the end of the Great Recession, consumer performance has regressed on a year-over-year basis in two out of every three quarters, the company said.
“The fact that charge-off rates remain near historical lows continues to fuel lenders’ appetites for extending credit, but there will be a tipping point eventually,” WalletHub said.