Total U.S. credit card debt has topped $1 trillion for the first time, according to a new report from the card comparison site WalletHub.
Consumers added $92 billion in credit card debt in 2017, bringing the aggregate over $1 trillion. Other categories over the trillion-dollar threshold are housing, auto loan, and student loan debt.
It’s “not a question of whether consumers are weakening financially, but rather how long this trend toward pre-recession habits will last and just how bad it will get,” noted Alina Comoreanu, a WalletHub researcher.
The average household owes a record $8,600, which is more than the peak during the recession.
More consumer debt is not necessarily a bad thing, as it means that families are confident enough in their finances to make new purchases. The Federal Reserve, in its latest report on monetary policy, noted households aren’t paying too much on debt overall, relative to income.
Still, WalletHub noted that in past instances when credit-card debt has run up like it did in 2017, charge-offs have increased. Some financial regulatory experts have warned that the rising level of credit card debt could be a concern for the banking system in the months ahead.
WalletHub’s study is based on data published by the Fed’s Board of Governors Wednesday.
