10.8% of credit card accounts only made the minimum payments in Q3 2024, which was a record high. The share only making the minimum payments has trended higher since Q4 2020 (at 7.9%). One year ago, in Q3 2023, the share was at 10.2%.
Consumers are Racking Up Larger Credit Card Balances While Paying Less
Total credit card balances increased by $49.2 billion in the past year hitting $913.8 billion in Q3 2024 (a record high) from $864.6billion one year ago in Q3 2023.
Credit Card Delinquencies Near Peak Levels
Credit card delinquencies, for 30+, 60+ and 90+ days past due, all increased in Q3 2024 to 3.52%, 2.51% and 1.75%, respectively. All three categories were slightly below the peak levels of 3.56%, 2.59% and 1.86% in Q1 2024.
Average Household Revolving Debt Increases
The average amount of Revolving Debt among American households in 2024 increased to $10,563, a new high, according to NerdWallet,
Spending on Necessities Was the Largest Contributor to Credit Card Debt
According to a 2024 American Household Credit Card Debt Study, when asked what categories contributed to credit card debt, consumers responded that 48% of credit card debt was used to pay for necessities. After that, 41% responded that spending on shopping and home or car repair (at 35%) contributed to their credit card debt.
