Mar 8, 201704:57 PMBlog
Credit card debt in America at highest point since 2008
Outstanding credit card debt in America is at the highest point since the end of 2008, with consumers in the United States racking up $60.4 billion in credit card debt during 2016’s fourth quarter.
That’s “serious cause for concern,” according to financial analysis website WalletHub. It’s the largest fourth-quarter debt increase since 2007 as well as the third-largest in the last 30 years. And it resulted in an $89.2 billion net increase in credit card debt for 2016 as a whole, which is the most for a year since 2007.
That performance also appears to confirm a trend, with American consumers setting the post 2007 Q3 record during the prior quarter. Some $21.9 billion in new credit card debt was accrued during that time, right after adding a Q2-record $34.4 billion to our tab and recording the smallest Q1 pay-down ($27.5 billion) since 2008.
“So it is not a question of whether consumers are weakening financially,” wrote Alina Comoreanu for WalletHub, “but rather how long this trend toward pre-recession habits will last and just how bad it will get. And WalletHub projects that in 2017 we will surpass the current record for outstanding balances by at least $100 billion.”
More detailed statistics from WalletHub on the site's report here.