- U.S. credit card debt reaches a new high of nearly $988 billion, fueled by rising inflation.
- The 40-49 age bracket leads with an average debt of $7,600, amidst escalating financial pressures.
- Young credit card users between 18 and 29 maintain the lowest debt at an average of $2,900.
The latest statistics from the Federal Reserve Bank paint a worrying picture about the nation's fiscal health, with American credit card debt skyrocketing to an unprecedented high of nearly $988 billion.
The striking increase in credit card balances can be traced back to the spike in inflation, reaching its zenith at 40-year high levels. Michele Raneri, the Vice President of U.S. Research and Consulting at TransUnion, explains this trend in the "Q1 2023 Credit Industry Insights Report." According to Raneri, an inflation-struck economy has pushed many consumers to lean on their credit lines to balance their financial equations.
The average credit card debt burden that an American bears is around $5,733, as per TransUnion's report. However, a more granular view reveals some age groups grappling with higher figures. A typical American between 40 and 49 years old has about $7,600 in credit card debt, marking this group as the one with the highest liabilities.
According to Ted Rossman, Senior Industry Analyst at Bankrate.com, the Generation X is particularly hard-pressed. "They are navigating expensive years," he shared with CNBC. "These individuals often find themselves juggling between caring for their aging parents and raising their own children. In many cases, they might also be financing their children's college education."
However, the picture is not entirely bleak. The youngest credit card users, those between 18 and 29 years of age, only carry an average debt of around $2,900. This lower figure can be attributed to the fact that most individuals in this age group are relatively new to using credit cards.
WOM Money Picks
Be a part of the winning team | 81% Success Rate.