Americans are up to their necks in credit card debt.
According to a report by the New York Federal Reserve, total credit card debt rose to $1.14 trillion from April to June 2024. That’s about $27 billion, or one percent, more than the previous quarter.
Fox Business reports: “Credit card delinquencies continued to rise in the second quarter from pre-pandemic levels.” According to the website, “about 9.1 percent of outstanding credit card debt was in some stage of delinquency in June, compared to 8.5 percent in the previous quarter.”
The average annual percentage rate on credit cards recently exceeded 20 – a new record.
LendingTree.com states: “According to data from LendingTree, credit card holders in New Jersey have the highest average credit card debt of any state, while holders in Mississippi have the lowest.”
Credit card holders in Connecticut have the second-highest average credit card debt, with Massachusetts in fifth place and Rhode Island in ninth place.
The average credit card debt in Connecticut was $8,640 in the fourth quarter of 2023. In Massachusetts it was $8,447 and in Rhode Island it was $7,872.
This is how much debt the average borrower in Massachusetts has
The Massachusetts Office of Economic Development (OED) says, “Credit is a normal part of life. It can be a valuable tool that allows you to buy a home or a car, finance an education, or take advantage of special offers and deals.”
OED says, “Credit abuse can lead to financial problems.” The bureau suggests that you learn about your “legal rights and remedies” to resolve these problems.
According to Fox Business, the average American has about $5,000 in credit card debt. At current annual interest rates, the network says, “it would take about 279 months and $8,124 in interest to pay off the debt at the minimum payment.”
LOOK: These are the richest women in America
Gallery Credit: Madison Troyer
QUIZ: Can you identify 50 famous companies by their logos?
How well do you know the logos of 50 of the world’s most famous companies? Keep scrolling to see if you can guess which symbol belongs to which brand.
