Credit Card Debt Has Reached a Record High in the US

Credit Card Debt Has Reached a Record High in the US
Credit cards. (Teerasak Ladnongkhun/Shutterstock)
Rahul Tora
8/28/2023
Updated:
8/28/2023
0:00

Credit card debt has hit the highest amount ever in history at $1 trillion. Prices of goods and services are still too high, which is leading to the average person relying more on their credit cards. Typically, increases in card credit usage is an indication of underlying financial problems for the ordinary consumers, such as not paying bills on time.

The average American also fails to discuss their credit card financial woes. About two out of five Americans feel embarrassed to talk about their increasing credit card debt. According to creditcards.com, a survey conducted by Bankrate online showed about 15 percent spend more money than their spouse will be okay with, and 9 percent stated having secret credit card debt. Delinquency rates are on the rise, as 43 percent of credit card holders only pay the minimum amount each month. Fifty-four percent of people also believe a partner with debt is a reason to consider divorce. According to Bankrate, typically households that are generating six figures or more in income are typically the longest in debt. Credit card debt is a huge problem, so discussing personal finance issues is a topic that has to be in the forefront for many people.

The demographic at the highest risk of not paying back their credit card are the age groups 18–29 and 30–39. One out of 10 people that have a credit card that is 90 days or more behind. With federal fund rates still increasing, people are still opening credit cards to pay for everyday expenses.

The average credit card interest rate has risen to 20.68 percent, according to WalletHub. Thirty-seven percent of Americans pay off their credit card balance month to month, but 12 percent only make the minimum payments. About 54 million U.S. adults have been in credit card debt for at least a year, and almost half of credit card debt holders have revolving debt month over month.

There are many ways credit card debt holders can help reduce the monthly payments of their revolving debt. Consumers can open up a zero percent interest balance-transfer card. Credit card owners can also call the issuer of the credit card to request for a lower rate.

The Epoch Times copyright © 2023. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.
Rahul Tora is a New York-based writer focusing on the economy, business, and world events. He has 6 years of experience in various roles within the financial services industry working for JPMorgan and Citigroup. He has served in bank functions ranging from risk management, regulatory reporting, and internal audits.