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Americans Accumulate $19 Billion in Credit Card Debt in One Month
In a turn that highlights a greater dependence on borrowing, Americans have amassed $19 billion in credit card debt in just one month. With a population of 340 million, this figure translates to approximately $56 per person.
This surge, primarily in revolving credit, occurred as retail sales data "handily" exceeded expectations. According to Wells Fargo's weekly economic and financial commentary, U.S. households may have propped up retail sales using revolving credit, signaling potential financial strain for many.
November's consumer credit report showed an increase in total consumer credit, surpassing $5 trillion for the first time, according to Wells Fargo. The increase was largely driven by a rise in revolving credit, mainly credit cards, which accounted for $19.1 billion of the increase.
"The balances of consumers' credit cards are at their highest levels ever as consumers have used their available credit to cope with higher-than-expected costs for goods and services," shared Michele Raneri, vice president of U.S. research and consulting at TransUnion, with Newsweek.
