article thumbnail

Total Household Debt Reaches $17.06 Trillion in Q2 2023; Credit Card Debt Exceeds $1 Trillion

Collection Industry News

Other balances, which include retail cards and other consumer loans, increased by $15 billion. Sections of the report are presented as interactive graphs on the New York Fed’s Household Debt and Credit Report web page and the full report is available for download. The post Total Household Debt Reaches $17.06

article thumbnail

Over half of student loan borrowers racked up credit card debt during the payment pause—now experts worry about ‘shock’

Collection Industry News

Over 50% of borrowers added debt on regular credit cards during the student loan payment pause and another 31% racked up balances on retail cards, a recent TransUnion analysis found. Many will have to work to get out of credit card debt at the same time.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Americans Are Carrying Record Household Debt into 2024

Collection Industry News

household debt grew by $800 million from 2022 to 2023, including a 16.6% growth in credit card debt. While the new year marks a time for new beginnings and a fresh start, millions of Americans entered 2024 with more debt and less to put in their checking and savings accounts. At the start of the year, U.S.

article thumbnail

How Buy Now, Pay Later is Transforming Online Shopping With Gen Z

True Accord

The rise of interest in BNPL is also likely influenced by increased financial uncertainty, high-interest rates and a downward trend in credit card approval. As consumers show preference for digital financial services, BNPL continues to grow and become available at more retailers. . Why are BNPLs Popular with Gen Z?

article thumbnail

CFPB Issues Analysis on Consumers of Buy Now, Pay Later Products

Troutman Sanders

BNPL products are a form of credit that allows a consumer to split a retail transaction into smaller, interest-free installments and repay over time. While BNPL credit is generally interest free, providers make money by charging fees to both sellers and consumers who don’t pay on time.

article thumbnail

How holiday shopping leads to debt nightmares

Roths Child Law

About half (52%) of the consumers in this nation racked up some credit card debt during the 2022 holiday season, and 31% still haven’t paid those bills off. About 74% of shoppers expect to break out their credit cards this year, too.

article thumbnail

Only half of Americans believe they can pay off their December credit card bill

Collection Industry News

The national credit card balance stands at $1.08 Some retail cards now charge upwards of 30%. Learn more: Best credit cards of 2023 “It was hard to imagine that growing debt, rising inflation and sky-high interest rates weren’t eventually going to take a toll,” said Matt Schulz, chief credit analyst at LendingTree.