New York Is Among Cities With the Biggest Credit Card Debt Paydown in 2021

New York Is Among Cities With the Biggest Credit Card Debt Paydown in 2021
© Pickawood

With consumers’ finances under pressure due to inflation, the personal-finance website WalletHub released two key reports highlighting additional hurdles to watch out for. For starters, WalletHub’s Credit Card Debt Study found that consumers racked up $87.3 billion in new debt during 2021. In addition, WalletHub’s Fed Rate Hike Report revealed that a Federal Reserve interest rate increase on March 16 would cost people with credit card debt an extra $1.6 – $3.2 billion in the next year alone.

Credit Card Debt in New York

  • 2021 Change in Household Debt: -$2,296
  • Average Household Debt: $15,760
  • 2021 Total Change in Debt: -$7,271,355,878
  • Total Outstanding Debt: $49,912,334,268

Credit Card Debt Study Key Stats

  • Consumers racked up $87.3 billion in credit card debt during 2021.
  • Credit card debt rose by $74.1 billion during Q4 2021 – the biggest increase ever.
  • The average household credit card balance was $8,590 at the end of 2021.
  • The average annual increase in credit card debt over the past 10 years is just $48.5 billion.
  • The best balance transfer credit cards currently offer 0% APRs for the first 12-21 months with no annual fee and low balance transfer fees.

Credit Card Debt Survey Key Findings

  • Return to Pre-Pandemic Spending Habits. Almost half of Americans (47%) say their credit card spending habits went back to pre-pandemic levels in 2022.
  • More Debt to Come in 2022. 33 million Americans will have more credit card debt by the end of 2022.
  • Less Debt Stress for Men. Women are 35% more likely than men to feel stressed about their credit card debt.
  • Personal Finances Managed Better Than Government. 9 in 10 Americans say their personal finances are managed better than the federal government.
  • Ready to Do Anything. More than a third (37%) of people with credit card debt say they would do anything to be debt-free.

More info here.

Fed Rate Hike Survey Key Findings

  • War Changing Our Spending Habits. 54% of Americans will reconsider their upcoming spending because of the war in Ukraine.
  • Inflation Concerns. 88% of Americans are concerned about inflation right now.
  • Rates Too High Already. 148 million people think their credit card rates are too high already.
  • Most Say Rate Hikes Are Bad. 55% of consumers think rate hikes are bad for their wallet.

More info here.