For some Tennessee residents, the recession of a decade ago may feel like it has long passed. For others, however, the burden of debt may feel just as fresh as ever. Recently released data indicates that the amount of consumer debt on credit cards is on the rise.
NerdWallet evaluated data from the United States Census Bureau and the Federal Reserve Bank of New York and found that compared to the same time last year, consumer credit card debt has increased by nearly eight percent. Contrary to what many people may think, this jump in credit card usage is not simply a reflection on American’s preference for luxury spending as many necessities are being paid for by credit cards.
Health care expenses are one category noted as paid for with credit cards by many American consumers. According to the NerdWallet data, the average U.S. household has more than $15,600 worth of credit card debt. This includes debt that is incurred and then paid off every month as well as debt that is carried over from month to month. Student loan debt and auto loan debt were also noted to have household averages of more than $46,000 and $27,000, respectively.
Value Penguin also released information about consumer debt and spending and found that more than 38 percent of American households have some form of credit card debt. It also indicated that people with no net worth or a negative net worth held the highest amount of credit card debt with an average of $10,308 per household.