No credit card binge, but burdens are rising
🔸Credit card balances broke the $1 trillion mark recently, but their share of disposable income remains moderate by historical standards. And they have risen only to pre-pandemic levels when expressed in real (inflation-adjusted) terms. There’s no consumer debt binge.
🔸But average interest rates on credit card balances have soared during this Fed tightening cycle, rising from less than 16% in May 2020 to more than 22% in May 2023.
🔸And a large number of households roll over balances from month to month. How much more are they now paying to do so?
Read my UHERO Blog Post for the answer: