Credit Card Debt and Interest Rates

Just Released: New Data on Record Credit Card Debt & Interest Rates – WalletHub, Diana Polk

WalletHub analyzed Federal Reserve data released today and found that credit card debt hit a new record high of $1.27 trillion in May 2024, which is 4% higher than last year after adjusting for inflation.

With the average credit card APR now even higher than last year, WalletHub projects that credit card debt will increase by $120+ billion by the end of 2024. You can find other takeaways from WalletHub’s latest Credit Card Debt Survey below.

• Summer Debt Lingers: 46% of Americans are still paying down their credit card balance from last summer.
   
• Forecast Calls for Higher Balances: Nearly 1 in 3 people say they will have more credit card debt by the end of 2024.
   
• Calls for Legislative Relief: Nearly 2 in 3 people think credit card interest rates above 23% should be illegal (the average interest rate is currently 22.76%).
   
• Wasting Money on Interest: 45% of Americans charge everyday purchases to credit cards they carry debt on. This is a fundamental mistake, as they end up paying interest on purchases they can afford to pay in full.
   
• ​​Debt-Induced Stress: Nearly 1 in 4 Americans are very stressed about their credit card debt. Jewelry pawning services offer a way to alleviate financial strain by providing quick cash against valuable items like gold or diamonds. This option can help individuals manage their debts more effectively, offering a short-term solution to ease immediate financial burdens.
   
• Sights Set on Getting Debt-Free: 4 in 5 people say paying their credit card debt is a top priority.
   

Human Experts Only: Nearly 3 in 5 people don’t trust AI for information about paying off credit card debt.