The Gist: Georgians are pulling out the plastic more than ever, ranking seventh in the nation for the biggest increase in credit card debt in the second quarter of this year.
What Happened?: The personal-finance website WalletHub released new Federal Reserve data showing a surge in credit card debt across the United States. In Georgia alone, average credit card debt increased by about $1.46 billion in the second quarter of the year, making it one of the states to watch when it comes to rising financial obligations.
By The Numbers:
- Increase in Georgia Debt: Average credit card debt shot up by $1.46 billion in Q2 2023.
- Average Georgia Household Debt: If you live in Georgia, chances are your household owes around $8,976 in credit card debt.
- Georgia Rank: Only six states outpaced Georgia in adding to their collective credit card bills this quarter.
Why It Matters: While credit cards can be a handy tool for covering expenses, this surge in debt points to potentially larger economic issues. With Georgia ranking seventh in the nation, the financial burden is getting heavier for many families across the state. This could impact local economies as households may tighten spending to manage their ballooning debt.
What’s Next?:
The next set of numbers is something to keep an eye on. Preliminary data for July shows a 7.72% uptick in credit card debt compared to the same month last year. If this trend continues, Georgia households could be in for a more challenging financial landscape.
National Context:
- Large Debt Increase: Across the board, consumers ended Q2 with almost $43 billion in additional credit card debt.
- Year-Over-Year Deterioration: Nationally, the jump in Q2 credit card debt is 16% more than the same period last year.
- High Average Household Debt: On a broader scale, the average U.S. household is carrying a balance of $10,170, which is still $2,242 shy of the record set back in 2007.
Local Take:
For Georgia, especially in localities where the cost of living is already a strain, this uptick in credit card debt can’t be ignored. Local policymakers might want to focus on financial literacy initiatives and perhaps think about how to alleviate some of this growing pressure on Georgia families.
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