US credit card debt has reached a record high of $1 trillion dollars, with an average interest rate of 20.63 percent, indicating a potential debt crisis.

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US records highest credit card debt level at $1.03 trillion, 4.6% increase from Q2, with 20.63% interest rate, 47% cardholders carry monthly balances, and $7,227 average debt, with Connecticut and New York having the highest.

We aren’t quite there yet, but an enormous credit card debt crisis is definitely brewing.  Americans are becoming increasingly dependent on their credit cards to make ends meet from month to month, the percentage of us that are carrying balances from month to month is growing, and the average rate of interest on such balances has risen above 20 percent.
If you can possibly avoid it, do not carry credit card balances from month to month, because that will strangle you financially.
Unfortunately, our young people are never taught this in school, and so many of them get into deep financial trouble when they become adults.  And once you get into deep financial trouble, it can take many years to get out of it.
In all my years, I have never seen numbers like we are witnessing right now.  The following are 8 signs that we are right on the verge of a major credit card debt crisis…

 
 

#1 The total amount of credit card debt in the United States has surpassed the one trillion dollar mark and is now at the highest level ever recorded…
The New York Federal Reserve reported earlier in August that total credit card debt surged to $1.03 trillion during the three-month period from April to June, an increase of $45 billion – or 4.6% – from the previous quarter. It marks the highest level on record in Fed data dating back to 2003.
#2 The average rate of interest on credit card balances has now risen to a new all-time record high of 20.63 percent…
The dual increase in credit card usage and delinquency rates is particularly concerning because interest rates are astronomically high right now. The average credit card annual percentage rate, or APR, hit a new record of 20.63% last week, according to a Bankrate database that goes back to 1985.
#3 A whopping 47 percent of all U.S. cardholders are now carrying balances from month to month…
Many cardholders from all age and income groups are carrying over credit card balances, with 47 percent saying they do so — up from 39 percent in December 2021 — the survey (carried out in July) finds. Agewise, 53 percent of Gen Xers carryover card balances from month to month. Next were Gen Z consumers (52 percent) followed by millennials, (49 percent) and baby boomers (41 percent)….

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