Credit card debt has hit a dramatic new all-time high, as many American families are getting close to a financial “breaking point.”
Total credit card debt hit a record $930.6 billion at the end of 2022, according to CNBC, with the average balance per credit card hitting $5,805.
According to Jill Gonzalez, an analyst at WalletHub, credit card debt is close to reaching a level that will become “unsustainable” for most individuals.
“It’s when people won’t be able to keep up with their bills,” she said. “We’re inching closer and closer to that breaking point.”
However, it’s not only credit card debt that is keeping many Americans living paycheck-to-paycheck. There are various other forms of debt, including student loan debt, automotive loan debt and “other” forms, like retail cards and other consumer loans.
At the end of the fourth quarter of 2022, Americans also had the following amounts in debt:
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$1.6 trillion in student loan debt.
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$1.55 trillion in automotive loans.
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$510 billion in “other” debt.
All told, Americans currently owe more than $4.65 trillion in non-housing debt. However, if you add in housing debt — mortgage balances — which add up to $11.92 trillion, Americans’ total household debt currently stands at $16.90 trillion. |