Are you concerned that your credit card debt is too high? The current credit card debt rate in the US is at a record high. According to the Federal Reserve Bank of New York, total credit card debt reached $986 billion in the fourth quarter of 2022, up $61 billion from the previous quarter. This is the highest total since the New York Fed began tracking in 1999.
The average credit card balance in the US is now $5,221, and the average credit card utilization rate is 25.6%. This means that the average credit card holder is using more than one-fourth of their available credit.
There are a number of reasons for the increase in credit card debt. One reason is that the economy has been growing slowly, and many people have been struggling to make ends meet. Another reason is that interest rates have been low, which has made it cheaper to borrow money.
High credit card balances are a concern for many people. It can lead to financial problems, such as bankruptcy and foreclosure. It can also make it difficult to get approved for new loans.
If you are struggling with debt, there are a number of things you can do. You can try to reduce your spending, increase your income, or refinance your debt. You can also talk to a credit counselor or a bankruptcy attorney.
There are also a number of government programs that can help people drowning in debt. The Consumer Financial Protection Bureau offers a number of resources, including a debt relief plan tool and a complaint database.
I offer free consultations to help people in the Chicago area get out of credit card debt. Reach out if you need help! Call or message today to schedule a free bankruptcy strategy session to learn how you can get a fresh start with a chapter 7 or chapter 13 bankruptcy.