U.S. Consumers Getting Deeper in Credit Card Debt
A recent study by personal-finance website WalletHub has found that U.S. consumers added $43 billion in debt during the second quarter of 2023—the second-largest increase ever in the second quarter.
The study also revealed the following key findings:
- Year-over-year deterioration. U.S. consumers added 16% more credit card debt in the second quarter of 2023 than the same quarter last year.
- Early third-quarter returns. Preliminary data for July shows a 7.72% increase in credit card debt compared to the same month last year.
- High average household debt. The average household credit card balance was $10,170 at the end of the second quarter of 2023. That’s $2,242 below the record set in the fourth quarter of 2007.
“U.S. consumers are adding new credit card debt at a nearly unprecedented rate,” said Jill Gonzalez, WalletHub analyst. “We added tens of billions of dollars in new credit card debt to our tab during the second quarter alone, which indicates that people are increasingly needing to borrow to make ends meet.”