A new study shows that Americans are quickly spiraling into credit card debt and there doesn’t seem to be an end in sight.
Many of us know just how easy it is to slip into debt. Credit cards are a slippery slop. For example, I am 22 and I worked on my credit for 2 years. I was doing great and I was proud of myself. However, a quick series of events happened and I suddenly could not keep up. I quickly fell behind and then way behind. Now, my credit is shot and I am trying to pick up the pieces.
Many people are in far, far deeper than I am. According to the study released on Monday, we are currently $33 billion in credit card debt.
Fox Business reports:
Personal Finance website WalletHub.com—who conducted the study—projects that by the end of 2017, Americans will pile more than $60 billion in new credit card debt, which means overall the U.S. is headed towards well over $1 trillion in credit card debt.
The news comes following the worst year for credit card debt (2016) since the Great Recession, where U.S. consumers ended the year with $87.2 billion in new credit card debt. The first quarter of 2017, however, started out strong as consumers payed down $30.5 billion of that debt but then relapsed during the second quarter from April 1 to June 30.
According to WalletHub, the average household credit card balance has rose to $7,996 in 2017, up from $7,584 during the same period last year. Total credit card debit is up more than 6% reaching $936.10 billion from $884.70 billion last year.