It seems like every few months this story passes through the headlines, but yet again we are talking about the amount of credit card debt racked up by Americans. The debt continues to grow, and it is reaching levels that are making some experts a little concerned.
According to the Federal Reserve, revolving credit increased by $11.2 billion in November to reach the highest total mark yet: $1.023 trillion. The previous high was $1.021 trillion set back in April 2008. There has also been a $55.1 billion increase in revolving credit over the last year. That marks a 5.7 percent increase in revolving credit, which is mainly composed of credit card debt.
Non-revolving credit also increased significantly in November, hitting $2.8 trillion total after a $16.8 billion increase. Non-revolving credit is mainly composed of auto loans and student debt. The increase in both of these forms of credit points to high consumer confidence, but it is also an early warning sign according to one analyst in the source article.Credit card delinquencies have increased over the last year, and it should be a primary focus of all Americans to limit their credit card debt and pay it off in full every month.
Credit card debt can easily snowball, and make it very difficult for people to make ends meet. Sometimes the best solution to this particularly insidious problem is a bankruptcy filing. If that is something you are considering, discussing the matter with an attorney first is highly recommended.
Source: USA Today, "Credit card debt hits new record, raising warning sign," Paul Davidson, Jan. 8, 2018