Study reveals that the typical household in the U.S. carries over $10,000 in credit card debt.
A recent study reveals that the typical credit card balance for American households reached approximately $10,757 in the third quarter of 2024, once inflation is taken into account.
On Friday, the personal-finance platform WalletHub unveiled its latest study on credit card debt, revealing that consumers accumulated an additional $21 billion in debt in the third quarter of 2024.
Initial findings for the year’s fourth quarter indicate that preliminary figures for October have reached an unprecedented peak in credit card debt for that month, in absolute terms.
John Kiernan, an editor at WalletHub, stated, “Despite the fact that the increase in the third quarter was 31% less than the previous year’s, and total debt is only 3% higher than last year when adjusted for inflation, we remain in quite precarious territory.”
Chip Lupo, a writer and analyst at WalletHub, provided responses through email to additional inquiries from The Center Square.
The preliminary results for Q4 indicate a concerning surge in credit card debt for October. Is there any insight into the factors contributing to this trend?
“The record-high credit card debt in October 2024 reflects a 3% year-over-year increase after inflation adjustments, driven by rising interest rates, holiday spending and lingering economic pressures. While Q3 debt growth slowed compared to 2023, total debt remains high at $1.29 trillion, signaling potential challenges ahead for consumers,” said Lupo.
As the festive season approaches, a significant number of Americans are likely to increase their reliance on credit cards, leading to a rise in debt levels by year’s end.
“Nearly half of Americans still have debt from the holidays from last year,” said Lupo. “The fact that people are still paying off debt from last holiday season makes you wonder if they are going to fall into that trap again or are they cutting back because of last year’s debt?”
A significant majority of WalletHub respondents believe that Santa’s generosity will decline this year due to rising inflation. Approximately one-third indicated they plan to reduce their holiday shopping expenditures this year compared to 2023.
