U.S. credit card holders owe more than $1 trillion
According to the New York Fed report, the overall credit card debt of Americans amounts to more than $1 trillion, the highest since the Great Recession. The rising trend for the credit card spendings is attributed to the growing expectations among population for the resurgent U.S. economy.
The Federal Reserve reveals the average amount of borrowed money per family increased by 6% in 2016 and reached the figure of $8,377.
While the tendency of spending more money marks a positive change for the American economy, experts suggest this trend is not so beneficial for an individual financial state of a household and may be a sign of financial distress. While the amount of credit card outstanding balance has shown recent growth, the rate of debt consolidation has slightly reduced. The figures from the annual SEC filings demonstrate that 88% of the total credit card debt is owed to the ten biggest plastic card issuers in the country headed by JPMorgan, Citigroup and Capital One, compared to 91% last year.