anonymous

WalletHub Reports Credit Card Debt Increase, Flags Cities with Least Sustainable Debt

credit card interest ratesSurveys from WalletHub show credit card debt increased by almost $39.6 billion in the third quarter of 2022 and more than half of Americans feel plagued by the Federal Reserve’s recent rate hikes.

12/09/2022 11:55 A.M.

2 minute read

This week, WalletHub released its most recent Credit Card Debt Study, Federal Reserve Rate Hike Report, and report on the Cities with the Most & Least-Sustainable Credit Card Debt to show how consumers are faring in the face of inflation pressures and worries about a prolonged recession. Key highlights are included below.

Credit Card Debt Study Key Stats:

  • Credit card debt increased by almost $39.6 billion during Q3 2022, an all-time record for the third quarter of the year.
  • Consumers’ Q3 2022 credit card debt increase was 2.4 times bigger than the post-Great Recession average for a third quarter.
  • WalletHub projects that consumers will end the year with roughly $110 billion more in credit card debt than they started with, which would be close to an annual record.
  • A Federal Reserve interest rate increase on Dec. 14 would cost people with credit card debt at least an extra $3.2 billion in the next year alone. That’s on top of the $22.9 billion increase already caused by the Fed’s previous rate hikes this year.

Fed Rate Hike Survey Findings:

  • Sixty-three percent of Americans say their wallets have been affected by the Fed’s rate hikes this year.
  • Two in three Americans think inflation is going to be worse in 2023.
  • Almost three in four people think the recent elections will not help tame inflation.
  • Forty-nine percent of Americans say they are not financially prepared for a recession.
  • Fifty-four percent of Americans say inflation has affected their holiday plans.
  • Sixty-eight percent of people say inflation has affected their monthly grocery expenses the most, followed by gas (23%) and housing (9%).

Among the cities with the most sustainable credit card debt were Fremont, San Francisco, Irvine and San Jose, California. Cities with the least sustainable credit card debt included Hialeah and Miami, Florida, and cities in Texas, Virginia and Tennessee, among others.

Read the complete rankings here.

Read the complete surveys:

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.

Advertisement

Base

Advertisement

FDCPA

This site uses cookies. By continuing to use our site, you are agreeing to our use of cookies. Review our Privacy Policy for more information. You may change your preferences on how cookies are stored by reviewing the settings on your browser.

The content on this site is presented for educational, general reference, and informational purposes only; is not intended to serve as legal or other advice; is not intended to be a full and exhaustive explanation of the law in any area; and should not replace the advice of your own legal counsel. By continuing to use our site, you are agreeing to the legal disclaimers in our Terms of Use. Review our Terms of Use for more information.

Friendly Reminder

Get continued access to ACA International’s wide array of resources, which can help you become more profitable, compliant and successful.

Renew your membership today to take advantage of tools you won’t find anywhere else:

  • Discounts on seminars, products, services and events
  • Resources to strengthen your compliance department
  • Industry-specific risk management products and services
  • Participation in ACA’s online community, The Hub
    Members-only website content
  • Professional development and training opportunities, and so much more!

If you have completed your renewal, please disregard this reminder.