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IPFS News Link • Finance - Money Management

More Americans Are Having a Hard Time Paying Their Big Credit Card Bills


Now they're starting to have a hard time paying those credit card bills.

The number of Americans rolling credit card debt from month to month is now higher than the number of people paying their bills in full for the first time ever.

Americans are buried under more than $1 trillion in credit card debt. Credit card balances increased by $45 billion between April and June alone. Meanwhile, credit card interest rates have climbed to 20.6%. With both balances and interest expenses rising, more and more people are struggling to pay the bills.

According to a JD Power survey, 51% of US credit cardholders now carry revolving debt. To put that into perspective, from 2018 to 2022, the percentage of those rolling over balances ranged from 40% to 50%.

The average balance on a credit card was $2,573 in June. That represents a 6.5% increase from a year ago.