Experian: credit card debt is at a record high
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According to Experian, one of the three U.S. credit reporting agencies, credit card debt hit a record high in 2017.
Experian posted about the rise in credit card debt earlier this week:
Credit card debt reached an all-time high of $786 billion at the end of 2017, up 6.7% from 2016 and topping the previous record of $737 billion in 2008, according to Experian data.
The article is worth reading in full, especially if you’re considering whether your credit card debt is too high.
One area to watch, with the higher balances we’re all carrying on average, is the delinquency rate, which is an indicator of overall credit health:
While delinquency rates have crept up to 2.26% at the end of 2017, they are significantly lower than the 4.73% rate in 2008 when balances were $737 billion. That lower delinquency rate is a good indicator that people are not charging beyond their means and spending irresponsibly. Americans averaged less than one late payment per billing cycle in 2017 for bill payments.
You can read the full Experian article, with charts, here.
LendingPoint is a personal loan provider specializing in NearPrime consumers. Typically, NearPrime consumers are people with credit scores in the 600s. If this is you, we’d love to talk to you about how we might be able to help you meet your financial goals. We offer loans from $2,000 to $25,000, all with fixed payments and simple interest.