2015 Credit Card Debt Study: Trends & Insights

Card Hub reports:

With the global economy showing signs of extreme volatility and debate raging over both the timing and frequency of Federal Reserve rate hikes, data that speaks to the financial health of the average American household can be quite telling. Credit card debt statistics, in particular, reflect consumer sentiment and can foretell overleveraging bubbles that may trigger constriction in credit markets.

While 2015 started with promise, as consumers repaid nearly $35 billion in credit card debt during the first quarter of the year, data from the second and third quarters do not inspire confidence. We erased almost all of our first-quarter paydown during Q2, racking up a whopping $32 billion in new balances, and then followed that up by adding $21.3 billion to our tab during Q3 – the largest second and third quarter binges since CardHub began conducting this study in 2009.

As a result, CardHub now projects that we will end 2015 with a net increase of $68.5 billion in credit card debt – putting us perilously close to a tipping point at which balances become unsustainable and delinquency rates skyrocket.

An article well worth your time.