Projections Show Credit Card Debt Will Top $1 Trillion by End of 2017
Projections based on recent and historical credit card trends by WalletHub, a credit monitoring service, found that Americans added $33 billion in credit card debt over the second quarter of 2017. By the end of the year, WalletHub projects an additional $60 billion in debt for a total of more than $1 trillion. Credit card debt has risen precipitously since the beginning of 2016 at 130% above the post-recession average. Charge off rates remain at historically low levels not experienced since the late 1980s, so lenders are not expected to reduce offerings soon.
WalletHub’s projections come at a time when government studies are showing Americans increasingly struggling with financial well-being. Even as incomes grow and poverty levels shrink across the nation, government officials are finding that fintech companies are helping boost financial inclusion for the underserved. With approximately 4 in 5 Americans living paycheck to paycheck, credit needs may even exceed the projections of WalletHub over the next year.