WalletHub Study Projects $70 Billion Net Increase in Credit Card Debt

Americans began 2019 owing more than $1 trillion in credit card debt. Although the forecast initially appeared brighter, thanks to consumers repaying $38.2 billion in credit card debt during Q1 2019, poor second-quarter results nearly erased that effort. U.S. consumers added $35.6 billion in new credit card debt during the second quarter of 2019 – the largest second-quarter build-up ever. As a result, WalletHub now projects a $70 billion net increase in consumer credit card debt for 2019 overall.

Outstanding credit card debt is at the second highest point since the end of 2008, having hit an all-time high in Q4 2018 of $1032.4 billion. However, the $35.6 billion in credit card debt added during Q2 2019 is 64% higher than the Q2 2018 increase. The U.S. ended 2018 with $66.5 billion in new credit card debt, and WalletHub projects a $70 billion increase in 2019. Since the end of the Great Recession, consumer performance has regressed on a year-over-year basis in 6 of every 10 quarters.