U.S. Credit card debt has soared to an average of more than $10,000 er household as the destructive Biden era comes to a close.
The average household credit card balance rose to $10,757 in the third quarter of 2024, according to a new study by WalletHub.
The study found that debit rose to $1.29 trillion this yea, three percent higher than debt versus October of 2023.
“Even though that third-quarter increase was 31% smaller than last year’s and total debt is just 3% above where it was last year after adjusting for inflation, we are still in fairly dangerous territory,” said WalletHub editor John Kierna.
“The record-high credit card debt in October 2024 reflects a 3% year-over-year increase after inflation adjustments, driven by rising interest rates, holiday spending and lingering economic pressures. While Q3 debt growth slowed compared to 2023, total debt remains high at $1.29 trillion, signaling potential challenges ahead for consumers,” added WalletHub writer & analyst Chip Lupo.
Lupo had some advice to help with this long-term debt.
“Transferring your credit card balance to a low or 0% APR card can be a smart way to save money and pay down debt faster,” Lupo advised. “When considering a balance transfer, focus on cards offering 0% introductory APRs with promotional periods up to 21 months. Such offers significantly reduce interest payments, provided you can pay off the transferred balance before the regular APR kicks in. Remember, most cards charge a balance transfer fee of about 3%, though some will waive this fee entirely. Calculating these costs upfront is crucial to ensure the move saves money.”
With the Christmas gift buying season upon us, Lupo also noted that for many Americans, this debt is compounded by the holidays because they are often still paying off their spending on Christmas from last year.
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