Credit Card, Personal Loan Balances Hit Record Highs Amid Soaring Inflation, Rising Rates
As consumers grapple with surging inflation and rising interest rates, more Americans are taking on extra debt to mitigate household financial pressures, a new report found.
According to TransUnion’s Q3 2022 Quarterly Credit Industry Insights Report (CIIR), credit card balances advanced 19 percent year over year in the third quarter, to an all-time high of $866 billion. The growth was driven heavily by Generation Z and millennial borrowers, with balances expanding by 72 percent and 32 percent, respectively.
The average credit card debt per borrower was $5,474, up 12 percent from last year. The delinquency rate also edged up, to 1.94 percent during the July–September period, up from 1.13 percent at the same time a year ago….