Published Thu, Feb 21, 2019 8:28 AM ESTUpdated Thu, Feb 21, 2019 11:37 AM EST
Consumer debt hits $4 trillion
Americans’ collective debt surpasses $4 trillion for the first time.
As of this month, outstanding consumer debt exceeded $4 trillion for the first time, according to the Federal Reserve.
Increasing credit card debt added more than $41 billion in outstanding balances at the end of 2018. At these levels, consumers are spending about 10 percent of their disposable income on nonmortgage debts, including credit cards, personal loans and medical bills.The average American has a credit card balance of $4,293, according to the latest Experian data. Total credit card debt is also at its highest point ever, surpassing $1 trillion, the Federal Reserve found.At the same time, credit card interest rates have never been higher. The average card interest rate is currently 17.41 percent, according to the latest report. That’s up from 16.15 percent one year earlier and 15.22 percent two years ago.