Here's How Much Americans Owe In Credit Card Debt

Thanks to inflation, everything costs more. 

And according to the Federal Reserve, America’s collective credit card debt is bigger than it's ever been.

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The Federal Reserve has reported that America is carrying nearly $1 trillion in credit card debt. This debt has increased by nearly $250 billion since April 2021, when it was nearly $740 billion. And according to Bankrate, 46% of cardholders are carrying a balance from month to month, meaning they do not pay their bill off at once, up from 39% a year prior.

While the average amount of debt that Americans have on their credit card is unclear, USA Today estimates it at around $7,951, based on data from the Federal Reserve Bank of New York and the US Census Bureau.

Additionally, the average interest rate in the first quarter of this year was 20.92%, according to WalletHub, which is the highest number since the Fed began keeping track of this information in 1994. For new cards, the annual percentage average was 22.15%, which is up from 18.32% during the same time period a year ago.

Since the pandemic, the Federal Reserve has continued to raise interest rates, while consumer spending on vacations, good and eating out has been on the rise.