Residents of Georgia are running up their credit card debt, according to a new report released by WalletHub. The data, gathered from TransUnion and the Federal Reserve, highlights a growing trend of financial strain across the country. Georgia ranks among the top states experiencing some of the highest debt increases.
The Details: In the second quarter of 2024, Georgia’s total credit card debt increased by $1.48 billion, marking one of the largest jumps in the country. The average household in Georgia now carries $9,119 in credit card debt. WalletHub’s analysis places the state at the 7th highest position in the nation for credit card debt increases.
National Perspective: Nationally, credit card debt saw an increase of $36 billion in the second quarter of 2024. This marks a 17% reduction in growth compared to the same quarter in 2023. Despite this, total credit card debt stands at $1.28 trillion, still 13% below the inflation-adjusted peak from December 2008.
While overall credit card balances remain lower than historical highs, households continue to feel the pressure of rising costs. The average household credit card balance sits at $10,680, which is almost $2,000 lower than the peak in late 2007.
Why It Matters: Though the rate of debt increase is slowing, the burden of high-interest rates remains a challenge for consumers. The average credit card interest rate in the U.S. is 22.76%, close to a record high. With these elevated rates, families struggling with rising balances face significant financial strain. Georgia households, in particular, are among those feeling the impact.
Early data from July indicates that credit card debt continues to climb, setting a new record in absolute terms. However, when adjusted for inflation, the rise was more moderate at 4% compared to the same period last year.
