U.S. consumers added $30 billion in credit card debt during Q3 2023, according to recent findings from WalletHub.
12/11/2023 2:50 P.M.
1.5 minute read
Last week, WalletHub released its most recent Credit Card Debt Study, finding that consumers added $30 billion in debt during the third quarter of 2023, putting the total credit card debt owed at $1.23 trillion.
Credit Card Debt Study Findings:
- If you don’t adjust for inflation, the amount of credit card debt added in October 2023 is a new record high for the month. However, after adjusting for inflation, the October 2023 buildup in credit card debt was actually 10% lower than the all-time record for the month, but still roughly 6% higher than last year.
- Outstanding credit card debt increased by roughly 1.6% during Q3, compared to the previous quarter.
- Consumers ended Q3 2023 with 24% less credit card debt than they added in Q3 2022.
- The increase in credit card debt during Q3 2023 was almost 51% larger than the post-Great Recession average for the third quarter of the year.
- Credit card finance charges increased by 4.35% during Q3 2023, with $163 billion charged during the quarter.
- The credit card charge-off rate increased by 3.25% during Q3 2023, finishing at 3.49%.
- The average household credit card balance was $10,263 at the end of Q3 2023. That’s $2,131 below the record set in Q4 2007.
- The ratio between total credit card debt and deposits rose to 7.1% in Q3 2023. That’s an increase of 13.7% compared to Q3 2022.
- The ratio between total credit card debt and assets was 0.72% in Q3 2023. That’s an increase of 5.0% compared to Q3 2022.
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.
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