Credit card balances rose by $61 billion in Q4 2022, reaching $986 billion, the highest level ever recorded, according to a report by the Federal Reserve Bank of New York’s Center for Microeconomic Data.
Credit card debt in America has reached staggering new levels, according to a recent report from the Federal Reserve Bank. In Q4 2022, credit card balances increased by $61 billion, raising the total debt to a record $986 billion. In the fourth quarter of 2019, the pre-pandemic high was $927 billion.
According to Ted Rossman, credit card balances have increased significantly in the past year. In fact, they have risen by 7% over the last quarter and 15% over the last year. This marks a significant change from their Q1 2021 position, where balances were actually 17% below pre-pandemic highs.
Americans reduced credit card debt using stimulus payments and cutting back on spending due to pandemic fears, says Rossman. Consumer spending, high inflation rates, and higher credit card rates have led to increased credit card balances.
Furthermore, the report also revealed an increase in auto loan debt of $28 billion to a total of $1.55 trillion. During the quarter, and an increase in student loan debt of $21 billion to a total of $1.6 trillion during the quarter. Generation Z debt is increasing due to rising education and transportation costs, making it difficult for young Americans.
Rossman offers advice for people struggling to pay off credit card debt. He suggests giving top priority to the credit card rate and recommends signing up for a 0% balance transfer card. By doing so, the interest clock can be paused for up to 21 months, giving time to pay down their balance without incurring additional interest charges.
If you’re struggling with a huge credit card debt, it’s important to take action and seek help from professionals. Collaborate with trained, experienced, and highly qualified specialists while using various strategies to pay off your debt. They can provide you with a tailored plan that works for your specific situation by identifying opportunities and potential risks.
Rather than trying to figure it all out alone, consider seeking help from the IfindTaxPro marketplace. By posting your project and signing up on their platform, you can connect with qualified accountants and tax specialists who can provide you with the guidance and support you need to get out of debt and back on track financially. Remember, there’s no shame in seeking help, and taking the first step toward a debt-free future can be life-changing.
If you’re a tax professional or accountant interested in helping others with credit card debt, consider joining the IfindTaxPro marketplace. Our platform provides a range of tools and resources to help connect with clients and provide them with guidance need to manage their finances and taxes effectively. Registering with IfindTaxPro could be a great opportunity for you to expand your business and help more people achieve financial stability.
Americans Struggle with Record High Credit Card...
[…] Credit card balances rose by $61 billion in Q4 2022, reaching $986 billion, the highest level ever recorded, according to a report by the Federal Reserve Bank of New York’s Center for Microeconomic Data. According to a recent repor […]