Americans Expected to Add $54 Billion in Credit Card... - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Americans Expected to Add $54 Billion in Credit Card Debt

Americans Expected to Add $54 Billion in Credit Card Debt

Americans Expected to Add $54 Billion in Credit Card Debt
The content is accurate at the time of publication and is subject to change.

Consumers seem to be piling on the debt again, according to a recent survey that resulted from combining quarterly charge-off data and reports from the Federal Reserve. The survey attempted to pinpoint the actual amount consumer debt increased after factoring in all the bad debt that has been expunged from their records by lending companies.

Charge-offs potentially make calculating the amount of consumer debt tricky, because when card-issuers sell charged-off debt to collection agencies the amounts sold disappear from the roster of overall debt although consumers are still held responsible for settling those debts. Charge-offs have been declining over the past four months but there has been an upsurge as of late, according to Fitch Ratings.

The afore-mentioned survey projects that consumers will finish out 2011 $54 billion more in debt due to credit cards then at the start of the year. Last year, in 2010, only $9 billion was added to the total amount of outstanding credit card debt and prior to that, in 2009, the amount of consumer credit card debt nationwide was actually decreased. Americans currently have nearly $772 billion in outstanding credit card balances, according to Time’s moneyland.com.

The survey remarked upon the rapid rate at which consumers are accumulating new credit card debt, referring to it as a “very alarming trajectory.”

“A trend indicating that consumers are reverting back to pre-recession debt levels cannot be a positive sign for the long term,” the report said, according to an article appearing on thehill.com.

This credit card debt is in addition to the roughly 1.7 trillion dollar financial burden already being shouldered by consumers for non-revolving debt such as mortgages.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

Credit Card Borrowing is Up among Millennials
Credit Card Borrowing is Up among Millennials

Posted: May 20, 2019

In the past millennials had fewer credit cards in their collective wallets, but things are changing according to the Federal Reserve Bank of New York’s Liberty Street Economics Blog, with over half of people in their 20’s carrying a credit… Continue reading

Three New Credit Cards from Sallie Mae
Three New Credit Cards from Sallie Mae

Posted: May 16, 2019

When people hear or read the name Sallie Mae more than likely they think about student loans because the company has been in that industry for years, but now they are looking to expand their reach and moving into the credit card business…. Continue reading

Earn a 75k Bonus With the Barclaycard Aviator Business Credit Card
Earn a 75k Bonus With the Barclaycard Aviator Business Credit Card

Posted: May 15, 2019

If you have been eyeing the Barclaycard AAdvantage Aviator Business credit card you may want to take a closer look because they have just raised the bonus offer that comes along with this card. Right now new cardholders can earn 75,000… Continue reading

Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Introducing the New Citi Rewards+ Card - the only credit card that automatically rounds up to the nearest 10 points on every purchase - with no cap
For Excellent, Good Credit
Enjoy 70,000 bonus miles after spending $5,000 on purchases in the first 90 days
For Good/Excellent Credit
See Rates & Fees
Perfect credit not required for approval; we may approve you when others won’t
For Fair/Bad Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!