The average household credit card debt grew by 13% in the second quarter of 2022. Per a report that was published by the Federal Reserve Bank of New York on August 30, 2022, this debt increase was the largest of its kind since 1999.
This is a sign of consumers’ increased reliance on credit to pay for basic bills against an inflationary backdrop.
From 2021 to 2022, credit card balances ballooned by $46 billion. Credit card debt is the second largest source of total debt of the last quarter.
According to financial advice website Bankrate, the current credit card interest rate is at a record level of 17.96%. Read more…