WASHINGTON–After what was a “record-setting year” for credit card debt reduction in 2020, U.S. consumers have set a new quarterly record after adding new credit card debt “by the billion,” according to a new analysis.
WalletHub said its newest Credit Card Debt Study, which looks at spending during Q2, found Americans racked up $45.7 billion in card debt during the second quarter.Q2 2021, according to WalletHub’s latest .
“That is an all-time record for credit card debt added during the second quarter of a year, and WalletHub now projects that consumers will add a total of $100 billion in debt during 2021,” the company said.
WalletHub noted the increase in debt is not uniform across the country, as some areas have bigger payment problems than others. With that in mind, WalletHub said it compared all of the states based on how much residents owe to credit card companies – specifically, how those balances changed in Q2.
For the full state rankings, go here.
Credit Card Debt Study Key Stats
Among the other findings in the most recent analysis:
- Bigger-Than-Normal Buildup. Consumers’ Q2 2021 credit card debt increase was 2.6X bigger than the post-Great Recession average for a second quarter.
- Record Annual Projection. WalletHub projects that consumers will end the year with roughly $100 billion more in credit card debt than they started with, which would be close to an annual record.
‘Reengaging With Society’
“Credit card debt levels are rising again because the economic uncertainty caused by the coronavirus pandemic has subsided. People are reengaging with society, and they’re making up for lost time by living life to the fullest, even if they can’t quite afford it,” said Jill Gonzalez, WalletHub analyst. “The fact that credit card debt has increased significantly isn’t too much of a surprise, though it is unclear whether this will be a momentary reaction to the unique conditions caused by COVID or the restart of consumers’ long-term slide toward financial instability.”