(By Carleen Johnson at The Center Square)—The average American household credit card balance as of the third quarter of 2024 was about $10,757 after adjusting for inflation, according to a new study.
The personal-finance website WalletHub on Friday released its new Credit Card Debt Study, which found that consumers added $21 billion in debt during the third quarter of 2024.
Early results for the fourth quarter of the year show preliminary data for October at a new record high for credit card debt in the month, in absolute terms.
WalletHub editor John Kiernan wrote, “Even though that third-quarter increase was 31% smaller than last year’s and total debt is just 3% above where it was last year after adjusting for inflation, we are still in fairly dangerous territory,” said Kiernan.
WalletHub writer & analyst Chip Lupo responded via email to follow up questions from The Center Square.
Those early Q4 results showing record high credit card debt for October are alarming-do we know what’s driving that at all?
“The record-high credit card debt in October 2024 reflects a 3% year-over-year increase after inflation adjustments, driven by rising interest rates, holiday spending and lingering economic pressures. While Q3 debt growth slowed compared to 2023, total debt remains high at $1.29 trillion, signaling potential challenges ahead for consumers,” said Lupo.
Has WalletHub done any analysis of how much credit card debt the average American puts on during the holidays?
“While we didn’t analyze this specifically, WalletHub found that holiday budgets this year range from just over $200 to more than $4,000, depending on factors such as income, existing debt, and cost of living,” said Lupo.
Any advice on balance transferring to avoid interest?
“Transferring your credit card balance to a low or 0% APR card can be a smart way to save money and pay down debt faster. When considering a balance transfer, focus on cards offering 0% introductory APRs with promotional periods up to 21 months. Such offers significantly reduce interest payments, provided you can pay off the transferred balance before the regular APR kicks in. Remember, most cards charge a balance transfer fee of about 3%, though some will waive this fee entirely. Calculating these costs upfront is crucial to ensure the move saves money,” said Lupo.
With holiday spending in full swing, many Americans are expected to add to credit card debt before the end of the year.
“Nearly half of Americans still have debt from the holidays from last year,” said Lupo. “The fact that people are still paying off debt from last holiday season makes you wonder if they are going to fall into that trap again or are they cutting back because of last year’s debt?”
Sixty-eight percent of WalletHub respondents said Santa will be less generous this year because of inflation. And about a third said they’ll spend less on holiday shopping this year compared with 2023.
At Last, a Company With Integrity in the Gold IRA Industry
For several years, I’ve been vetting out precious metals companies in search of the best. I believe in gold and silver but it’s hard to find integrity in the Gold IRA industry. The vast majority operate with shady tactics and gigantic spreads that take advantage of Americans who simply want to protect their life’s savings.
I’ve found a handful that I like and I’ve worked with some of them. By no means would I “unrecommend” them because, again, I vetted them out and found them to be above the fold. Unfortunately, it isn’t hard to be better than the rest when the rest are so darn awful.
After years of searching, I finally found a company that truly operates with integrity. Augusta Precious Metals has three important attributes that set them far above the competition:
- Non-Commissioned Sales Team: I cannot stress how important and unique this is. With just about every other company in the Gold IRA industry, the sales teams make commission from every account they open. This means they steer their clients toward the gold and silver products with the highest commission. With Augusta Precious Metals, the team is solely focused on putting the best gold and silver for their clients into their IRA. They get paid to serve the best interests of the Gold IRA client, NOT their own commission pay.
- Incredibly Low Fees: Most Americans would be shocked if they knew the spread other Gold IRA companies charge. Augusta charges just 5% versus up to 45% elsewhere.
- No Pressure, No Gimmicks: There’s an understanding among most in the Gold IRA industry that fear and pressure is the way to go. Augusta Precious Metals takes a sober approach when working with clients because they hold integrity in the highest possible regard. This is why they don’t offer gimmicks like “free” or “bonus” silver. It’s also why they do not apply pressure tactics to get quick sales. Their educational and transparent approach to doing business is exceedingly rare in the Gold IRA industry.
