Study: Consumers’ Pre-Recession Spending, Debt Habits Continue

Consumers’ debt remains on track to top $1 trillion this year, according to WalletHub.

12/14/2017 9:00 AM

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Study: Consumers’ Pre-Recession Spending, Debt Habits Continue

Consumers built up $22 billion in new credit card debt in the third quarter 2017, meaning balances could surpass $50 billion by the end of the year, according to the latest Credit Card Debt Study: Trends & Insights report from Wallet Hub.

The third quarter increase brought credit card debt to $950.2 billion. The $22 billion increase is 46 percent higher than the post-Great Recession average and the highest accumulation since 2007, according to WalletHub.

 A year ago, in third quarter 2016, total credit card debt was $900.3 billion.

“Following the worst year for credit card debt since the Great Recession, we started 2017 with a $30.5 billion first-quarter paydown. But we borrowed it back and then some during Q2, racking up $33 billion in new debt and another $22.2 billion in Q3. So it’s not a question of whether consumers are weakening financially, but rather how long this trend toward pre-recession habits will last and just how bad it will get,” WalletHub Senior Researcher Alina Comoreanu said in a news release.

If balances surpass $50 billion this year, WalletHub predicts consumers will have more than $1 trillion in credit card debt in 2017.

Consumers had $87.2 billion in new credit card debt at the end of 2016, the most in one year since 2007 and a 130 percent increase compared to the post-recession average.

It also reports consumers’ performance managing their credit card debt has regressed on a year-over-year basis for two out of every three quarters.

According to the study, the average credit card debt per household in the third quarter was $8,109, a 5 percent increase from $7,711 in the third quarter of 2016.

The complete study with historical data on credit card debt is available on WalletHub’s website.


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


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Study: Consumers’ Pre-Recession Spending, Debt Habits Continue

Consumers built up $22 billion in new credit card debt in the third quarter 2017, meaning balances could surpass $50 billion by the end of the year, according to the latest Credit Card Debt Study: Trends & Insights report from Wallet Hub.

The third quarter increase brought credit card debt to $950.2 billion. The $22 billion increase is 46 percent higher than the post-Great Recession average and the highest accumulation since 2007, according to WalletHub.

 A year ago, in third quarter 2016, total credit card debt was $900.3 billion.

“Following the worst year for credit card debt since the Great Recession, we started 2017 with a $30.5 billion first-quarter paydown. But we borrowed it back and then some during Q2, racking up $33 billion in new debt and another $22.2 billion in Q3. So it’s not a question of whether consumers are weakening financially, but rather how long this trend toward pre-recession habits will last and just how bad it will get,” WalletHub Senior Researcher Alina Comoreanu said in a news release.

If balances surpass $50 billion this year, WalletHub predicts consumers will have more than $1 trillion in credit card debt in 2017.

Consumers had $87.2 billion in new credit card debt at the end of 2016, the most in one year since 2007 and a 130 percent increase compared to the post-recession average.

It also reports consumers’ performance managing their credit card debt has regressed on a year-over-year basis for two out of every three quarters.

According to the study, the average credit card debt per household in the third quarter was $8,109, a 5 percent increase from $7,711 in the third quarter of 2016.

The complete study with historical data on credit card debt is available on WalletHub’s website.


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

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