Americans are facing a growing credit card debt crisis, with balances now exceeding $1 trillion for the third consecutive quarter. TransUnion reports that the average credit card balance has risen to $6,329 in the second quarter of 2024, up from $4,828 in the same period of 2021. The number of Americans carrying a balance from month to month has also increased, reaching 170.1 million in the second quarter of this year, compared to 152.9 million in 2021.
Additionally, the delinquency rate has more than doubled, with 2.26% of credit card borrowers at least 90 days past due on their payments, up from 0.95% in the second quarter of 2021. Soaring inflation is likely a significant factor contributing to Americans’ deteriorating spending patterns.
Rising credit card balances alarming
As higher prices strain budgets, many struggle to keep up with increasing costs. This highlights the importance of financial planning and management in navigating these challenging times. Growing credit card balances and rising delinquency rates suggest that more Americans may need to seek debt relief solutions and make budget adjustments.
While changing the direction of the wind may not be possible, adjusting one’s sails can help weather the storm. Financial experts advise prioritizing the repayment of high-interest credit card debt and seeking informed planning and proactive measures to overcome financial instability. With the right strategies and resources, it is possible to manage debt and work towards a more stable financial future.
