You might be able to look at your bank statements for confirmation, but if you didn’t already know, credit cards are having a moment. Consumers are swiping (and inserting the chip) at a torrid pace and credit card companies are benefiting big-time.
he Federal Reserve Is expected to report Monday that debt from consumer credit rose by $16 billion in March, according to USA Today. While some of that can be attributed to strong credit card use, other borrowing, such as auto and student loans, make up a large part as well.
At the end of 2017, Americans owed more than $1 trillion in credit card debt, surpassing the previous high set during the Great Recession of 2008. Economists weren’t too concerned then as the active holiday season signaled a robust economy. But with delinquencies continuing to rise, especially for those who make less money, economy watchers are taking a closer look, USA Today reports.
A recent study from WalletHub shows that Q4 2017 saw “the highest quarterly accumulation of credit card debt in the last 30 years – 68% higher than the post-Great Recession average.