Americans added $67.1 billion in new debt during the second quarter of 2022, a new record, according to a study released Monday.
The study, based on an analysis of data from TransUnion, the Federal Reserve, and Bureau of Labor Statistics, found that the average American household has roughly $8,942 in credit card debt. This figure is just $3,000 below WalletHub’s projected “breaking point” for our household finances.
The new debt increase is 3.5 times bigger than the post-Great Recession average for the second quarter of a year, according to a study conducted by WalletHub.
California ranked highest overall for total credit card debt increase, with Texas, Florida, New York, and Illinois rounding out the top five states, WalletHub noted. The study was based on an analysis of data from TransUnion, the Federal Reserve, and Bureau of Labor Statistics.
The trend follows predictions made by economic prophet Michael Burry, who said that U.S. households would exhaust all savings by Christmas 2022 as credit card balances rise because “consumers choose violence rather than [cutting] back on spending in the face of inflation.” (RELATED: REPORT: Some Homebuyers Lost More Than $100,000 In Purchasing Power In One Year)
WalletHub’s study projects that consumers will close out 2022 with $110 billion more in debt than they started with, close to an annual record. Part of the increase could be fueled by a potential Fed interest rate increase on September 21st, which could add an extra $5.3 billion over the course of the next year, on top of $15.3 billion already caused by previous hikes, WalletHub noted.