Due to the rising cost of living and concerns about the potential impact of a prolonged recession, the release of WalletHub's latest credit card debt study and report highlighted how consumers are managing their finances.
The study revealed that credit card debt grew by almost 40% during the third quarter of 2022. It was the highest quarterly increase since the third quarter of 2002.
The study also noted that the increase in credit card debt during the third quarter of 2022 was 2.4 times bigger than the average during the previous quarter.
According to the study, credit card debt is expected to reach about $112 billion by the end of 2022 as consumers continue to carry more debt than they did at the beginning of the year.
People with credit card debt are expected to feel the effects of the Federal Reserve's interest rate increase in December. It's estimated that they'll be paying around an extra $3 billion due to this increase. This is on top of the $22.9 billion that was already added due to the previous rate hikes.
The cities with the lowest sustainable credit card debt are located in Florida, including Miami, Port St. Lucie, and Hialeah. You can view the full list here.