In the face of a fragile economy, WalletHub’s latest Credit Card Debt Study reveals that consumers accumulated $74 billion in credit card debt during 2024. This marks a slowdown compared to 2023, where the increase was higher. It’s important to note that the Federal Reserve’s recent methodology update could lead to some misleading conclusions, but WalletHub has accounted for this change in its findings.
2024 Debt Surge Smaller Than 2023:
The $74 billion rise in debt in 2024 represents a 33% smaller increase than the previous year. Despite the increase, it shows a positive sign compared to the steep rise in debt observed in 2023.
Debt Below Peak Levels:
By the end of 2024, the total credit card debt, adjusted for inflation, stood at approximately $1.35 trillion, about 9% lower than the record-high levels seen in prior years.
Increase in Delinquent Debt:
Delinquencies rose notably, with consumers charging off about $59 billion in debt during 2024—$15 billion more than in 2023.
Early Data from 2025:
Preliminary data for January 2025 shows a 2% decline in credit card debt compared to December 2024, signaling a possible shift in consumer behavior early into the new year.
Average Household Debt Decreases:
The average household credit card balance at the end of 2024 was about $11,253, after inflation adjustment. This represents a reduction of $1,544 from the record-high level, offering consumers some relief from previous debt burdens.
Best Balance Transfer Credit Cards:
For consumers looking to manage their debt more effectively, the best balance transfer credit cards are currently offering 0% APR for up to 21 months, with no annual fees and low balance transfer fees—helping to make debt management easier and more affordable.
“The bad news is that we took on $74 billion in new credit card debt during 2024, according to just-released numbers. Plus, total credit card debt ended the year at a new record high in absolute terms, and consumers defaulted on a staggering $59 billion in debt – 34% more than the prior year. The good news is that this $74 billion increase actually represents a 33% improvement compared to 2023, and total debt is 9% shy of a record when you adjust for inflation. If we can embrace our budgets a bit more and continue improving year over year, our wallets will be in a much healthier place. That might sound like wishful thinking in the current economic climate, but it doesn’t have to be.”
– John Kiernan, WalletHub Editor
