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Outstanding credit card debt and other revolving debt increased $22.9 billion in December 2024, leading to a total credit debt rise to $40.8 billion, Federal Reserve data showed Friday (Feb 7).
The figures reflect a “huge” jump in credit card balances and non-revolving credit, exceeding all estimates by economists surveyed by the mainstream news media, according to PYMNTS. Auto and student loans rose $18 billion, the highest amount in two years. But is this trend part of how many Americans are dealing with potential financial stress: turning to credit cards. (OTHER POLLS: Are You Focusing On Any Personal Development Goals This Year?)
“For consumers who are struggling to pay bills, credit is often more than a convenience — it is a necessity,” PYMNTS wrote in another analysis. “While 21% of overall credit users reported that they would not have been able to afford essential expenses without using credit, this number jumps dramatically for those living paycheck to paycheck with difficulty paying bills.”
Financial Stress Is Still Here In 2025
“The adoption of credit across a range of purchases shows how essential financial flexibility has become in modern consumer habits,” PYMNTS wrote. (POPULAR: Have You Tried A New Fitness Activity (e.g., Yoga, Pilates, Crossfit) This Year?)
An article published by CBS News revealed that the average American has around $8,000 in credit card debt. Those who are considering using their home equity or loan or line of credit to consolidate or pay down debt are likely in a critical financial situation. Most Americans don’t know that they won’t receive a collection call if a payment is missed by a day or so. These calls usually start at the 90 day mark when debtors usually owe more than the principal amount.
“These credit card data are showing warning signs of consumer stress,” Financial Monitoring Group of the Philadelphia Fed assistant vice president Andrew Kish said of the situation, according to USA Today. “More borrowers are falling behind on their credit card payments. … We’ll be closely watching these performance measures in the coming quarters to monitor the health of consumers.” Delinquent balances are worsening throughout the state, and likely many others.
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