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HomeEntrepreneurHow Does Your Credit Card Debt Compare to Others in the US?

How Does Your Credit Card Debt Compare to Others in the US?

Credit card debt in the U.S. hit a record high in Q2, and Americans are paying the price — in interest.

The Federal Reserve Bank of New York reported Tuesday that credit card debt skyrocketed to $1.14 trillion as of Q2 2024. That’s a $27 billion increase from the previous quarter and a $111 billion jump from the same time last year. The report was representative of the nation, based on a national sample of data drawn from the New York Fed’s Consumer Credit Panel.

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Meanwhile, TransUnion’s second-quarter Credit Industry Insights Report released Thursday shows that the average American now has an average of $6,204 in credit card debt, or 6% more than last year’s average of $5,947.

TransUnion reported 545 million credit cards in use in the U.S. in Q2 2024.

Paul Siegfried, senior vice president and credit card business leader at TransUnion, says there’s a difference between how higher-risk and lower-risk borrowers use their credit cards.

“Higher-risk [borrowers] seem to be experiencing more significant inflationary pressures and as such, relying on their cards more, evident in increasing balances and higher utilization,” he stated.

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At the same time, TransUnion found that credit card originations, or approval for new credit cards, mortgages, and loans, was down 7% year-over-year.

“Originations will likely continue to decline for mid-tier and worse consumers as issuers look to less risky borrowers,” Siegfried said.

According to a Forbes Advisor’s report, the average credit card annual percentage rate (APR) is around 27.62% this week.

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