Soaring American Credit Debt: Credit card debt is in dangerous territory. How dangerous? Let’s put it this way: Our total plastic balance is very near recession level.
America’s credit card tab currently stands at more than $15.24 trillion, according to the Federal Reserve Bank of New York’s latest U.S. household indebtedness report.
The new figure represents an increase of $268 billion, or 1.9 percent, in the third quarter of 2021. Still, credit card balances remain $123 billion lower than they had been at the end of 2019. At the individual level, the average American borrower today has a balance of $5,313 and owns 3.1 credit cards, according to Experian’s most recent State of Credit survey.
The survey also highlights regional, generational and state-by-state average FICO scores. Washington D.C., for instance, saw the highest spike in FICO scores, with an increase of 10 points, whereas North Dakota had the lowest. Baby boomers, those born between 1946 and 1964, remain the most credit-active consumers with their generation having the highest number of credit reports on file.
The Central Federal Reserve also tracks credit card debt but reports a different, higher pattern of growth. Consumers are not paying off their debt fast enough, allowing interest to accumulate and keep them in debt. The share of consumers who became 90 or more days delinquent on their outstanding credit card balances has also been rising since Q3 2016, according to the New York Fed. Check out our article about the consumer debt in US and inflation and credit card debt.
How to get out of credit card debt? If you are struggling with unsustainable credit card debt, it’s time to consider ways to mitigate the problem, potentially with a credit card debt loan. Americor offers a FREE debt analysis and consultation to evaluate your current financial situation.