The WalletHub study found that U.S. consumers have added a staggering $67.1 billion in new debt during the second quarter of 2022—a new quarterly record.
09/14/2022 8:00 A.M.
2 minute read
A recent WalletHub study gauging quarterly changes in national consumer credit card debt found that consumers started 2022 by paying down just $12.5 billion in the first quarter and adding a staggering $67.1 billion in new debt during the second quarter. That is an all-time record for credit card debt added during the second quarter of a year, and WalletHub now projects that consumers will add a total of $110 billion in debt during 2022.
In contrast to the record-setting reduction of credit card debt seen in 2020, consumers added $86.2 billion in new credit card debt during 2021, which was capped off by a $73.1 billion increase during the final quarter of the year.
This new debt is also likely to increase soon, with the Federal Reserve expected to raise its target rate by 75 basis points on Sept. 21. This will likely cost consumers with credit card debt an extra $5.3 billion over the next 12 months, according to WalletHub.
Key findings from the survey include:
- Credit card debt increased by $67.1 billion during the second quarter of 2022.
- The increase in credit card debt during the second quarter was 3.5 times larger than the post-Great Recession average for the second quarter of a year.
- Outstanding credit card debt increased by roughly 6% during the second quarter, compared to the previous quarter.
- Since the end of the Great Recession, consumer performance has regressed on a year-over-year basis in six of every 10 quarters.
- At 1.97% for second quarter 2022, the credit card charge-off rate was 8.24% higher than in the previous quarter.
- The average household’s credit card balance is $8,942. This is $2,995 below WalletHub’s projected breaking point for household finances.
Additionally, WalletHub compared all the states across the country based on how much residents owe to credit card companies—specifically, how those balances changed in the second quarter.
States with the Biggest Debt Increase | States with the Smallest Debt Increase |
California | Vermont |
Texas | Wyoming |
Florida | North Dakota |
New York | South Dakota |
Illinois | Alaska |
WalletHub’s quarterly credit card debt studies are based on analysis of the latest data on consumers’ finances available from TransUnion as well as the Federal Reserve and Bureau of Labor Statistics.
Read more findings from the survey here.
If you have executive leadership updates or other member news to share with ACA, contact our communications department at [email protected]. View our publications page for more information and our news submission guidelines here.