Record $180B Rise in Credit Card Debt in 2022 + Fed Rate Hike to Cost $3.4B & Cities with the Biggest Debt Increase – WalletHub Reports

With household finances already under pressure and the Fed releasing its G19 report yesterday, the personal-finance website WalletHub today released new reports and surveys highlighting additional hurdles to watch out for.

WalletHub’s Credit Card Debt Study found that consumers racked up a record $180.3 billion in new debt during 2022, and WalletHub’s Fed Rate Hike Report revealed that the interest rate increase expected on March 22 will cost people with credit card debt an extra $3.4 billion over the next 12 months.

Cities with the Smallest Debt Increase Cities with the Biggest Debt Increase
Lewiston, ME Santa Clarita, CA
Casper, WY San Bernardino, CA
Manchester, NH Glendale, CA
Rapid City, SD Port St. Lucie, FL
Oklahoma City, OK Chula Vista, CA
Augusta, GA Moreno Valley, CA
Corpus Christi, TX Riverside, CA
Durham, NC Henderson, NV
Fayetteville, NC Pembroke Pines, FL
Akron, OH New York, NY

See the full breakdown of how credit card debt increased by city.

Credit Card Debt Study Key Stats

  • Consumers racked up a record $180.3 billion in credit card debt during 2022. The average annual increase in credit card debt over the past 12 years is just $47.8 billion.
  • Credit card debt rose by $85.8 billion during Q4 2022 – the biggest quarterly increase recorded to date.
  • The average household credit card balance was $9,990 at the end of 2022 – $2,015 below WalletHub’s projected breaking point for household finances.
  • The best balance transfer credit cards currently offer 0% APRs for the first 12-21 months with no annual fee and low balance transfer fees.

For the full results, visit WalletHub’s Credit Card Debt Study.

Credit Card Debt Survey Key Findings

  • More Debt in 2023. 56% of people say they have more credit card debt than they did 12 months ago.
  • Worries Over Cost of Debt. 66% of Americans are worried about the cost of their credit card debt increasing due to interest rate hikes by the Federal Reserve.
  • Long Road to Repayment. 57% of people with credit card debt say it will take them more than a year to pay it off (a 21% increase from 2022).
  • Bad Spending Habits. More than a quarter of Americans admit they’d go into credit card debt for frivolous spending.
  • Personal Finances Managed Better Than Government. 85% of Americans say their personal finances are managed better than the federal government.
  • Debt Stress. 45% of people say credit card debt makes them feel stressed.
  • Desperate for Relief. More than 1 in 3 Americans with credit card debt say they would do anything to be debt-free.
  • Looking for Lower Rates. 83% of Americans say they will try to lower the interest rate on their credit card debt in 2023.

For the full results, visit WalletHub’s Credit Card Debt Survey.

Fed Rate Hike Survey Key Findings

  • Tired of Rate Hikes. Nearly 3 in 4 Americans are fed up with hearing about the Fed.
  • Feeling the Pain Already. 8 in 10 people say their wallets have been affected by the Fed increasing interest rates this year.
  • Excellently Prepared. 3.5X more people with excellent credit are financially prepared for a recession than people with subprime credit.
  • Recession ‘Round the Corner. 73% of Americans think a recession is inevitable.
  • Not Ready for a Recession. Compared to January, 20% more Americans are not financially prepared for a recession.
  • Fed Confusion. More than 1 in 3 people do not understand why the Fed raises interest rates.
  • Jobs at Risk. 1 in 4 people say their job is at risk if the Fed continues to raise interest rates.