NEW YORK—Total credit card debt in the U.S. has reached a record high, a challenge exacerbated by the fact people are putting less money toward paying it down, a new report reveals.
On an individual level, Americans carried credit card balances averaging $7,932 as of the end of 2023, per New York Life’s “Wealth Watch 2024” survey, CNBC said.
“That’s up from an average balance of $6,321 during the same time period in 2022,” the report said. “While the majority of those in credit card debt are allocating the same or more money toward chipping away at their balances, nearly a quarter say they’re contributing less. Debt holders say they put around $363 per month toward their credit card debt in 2023, slightly less than the $430 they paid monthly in 2022.”
One reason people are contributing less is due to record-high credit card interest rates combined with elevated prices for everyday goods, Matt Schulz, chief credit analyst at LendingTree, told CNBC.
‘Really Struggling’
“It tells you that people are really struggling in the wake of stubborn inflation, rising interest rates and other financial headwinds that they’ve faced for several years. People have less money to contribute to their financial goals like paying down debt,” he told the news outlet.
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