(The Center Square) – The average American household credit card balance as of the third quarter of 2024 was about $10,757 after adjusting for inflation, according to a new study.
The personal-finance website WalletHub onFriday released its new Credit Card Debt Study, which found that consumers added $21 billion in debt during the third quarter of 2024.
Early results for the fourth quarter of the year show preliminary data for October at a new record high for credit card debt in the month, in absolute terms.
WalletHub editor John Kiernan wrote, “Even though that third-quarter increase was 31% smaller than last year’s and total debt is just 3% above where it was last year after adjusting for inflation, we are still in fairly dangerous territory,” said Kiernan.
WalletHub writer & analyst Chip Lupo responded via email to follow up questions from The Center Square.
Those early Q4 results showing record high credit card debt for October are alarming-do we know what’s driving that at all?
“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.
Has WalletHub done any analysis of how much credit card debt the average American puts on during the holidays?
“While we didn’t analyze this specifically, WalletHub found that holiday budgets this year range from just over $200 to more than $4,000, depending on factors such as income, existing debt, and cost of living,” said Lupo.
Any advice on balance transferring to avoid interest?
“Transferring your credit card balance to a low or 0% APR card can be a smart way to save money and pay down debt faster. When considering a balance transfer, focus on cards offering 0% introductory APRs with promotional periods up to 21 months. Such offers significantly reduce interest payments, provided you can pay off the transferred balance before the regular APR kicks in. Remember, most cards charge a balance transfer fee of about 3%, though some will waive this fee entirely. Calculating these costs upfront is crucial to ensure the move saves money,” said Lupo.
With holiday spending in full swing, many Americans are expected to add to credit card debt before the end of the year.
“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?”
Sixty-eight percent of WalletHub respondents said Santa will be less generous this year because of inflation. And about a third said they’ll spend less on holiday shopping this year compared with 2023.
Placing and encouraging THE PEOPLE to go into debt and lose their ability to SELF-govern their own lives, now being placed into fianancial serfdom to serve they, the new higher authority of first a bank, then a government in collective national debt in accountability,,, is the ultimate goal of the secular socialists who seek to control us. Facing and attempting to govern a Strong Self-governing people is the greatest fear of controlling people who cannot gain leverage via brains or hard work, so they maniupulate in offers of immediate social gratifications, of government free stuff, to debilitate WE THE PEOPLE into maleable controllable peasants. Do not be decceived when they try to use sex, drugs or alcohol as their means of last resort to ensnare us into postions of dependency upon they and their evil schemes and social machinations to gain control over us.
The average STUPID American household credit card balance as of the third quarter of 2024 was about $10,757 after adjusting for inflation, according to a new study.
Fools need to understand the difference between “Need” and “Want” when it comes to buying something that they don’t have the money for.
Interest on $10757.00 can be $2366.54 per year or higher!
Unfortunately for the tictog generation, and entitled generations, THEY ALWAYS PUT wants ahead of needs..
Hell some feel that wants override needs!