American credit card debt has reached a staggering $1.14 trillion as of Q2 2024, marking a $27 billion increase in just three months. This alarming trend is compounded by rising delinquency rates, with 9.1% of credit card balances becoming delinquent over the past year. The increase in credit card debt is attributed to several factors, including rising unemployment rates, which have climbed to 4.3%, and escalating interest rates that have pushed average APRs to 22.76%. Many consumers are turning to credit cards to cover essential expenses as financial pressures mount amid a potential economic slowdown. Additionally, inflation continues to affect the cost of living, further straining household budgets. Generational differences in credit card debt reveal that Generation X carries the highest average debt at $9,255, while Generation Z has the lowest at $3,266. To combat this growing issue, experts suggest strategies such as creating a budget, transferring balances, and seeking help from credit counselors.
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