The national credit card debt sets an all-time record high after a $92 billion increase throughout 2017.
According to ABC News, for the first time in history, the overall credit card debt in the United States has surpassed $1 trillion.
“We haven’t seen anything like this,” said Jill Gonzalez, a senior analyst at WalletHub. “Consumer confidence is at its highest point. Since the recession, people have been saving up for houses, cars… new furniture, and appliances, which often get charged on credit cards.”
During the fourth quarter of 2017, consumers added approximately $67.6 billion, and the $92 billion overall increase is the highest single-year amount since 2007.
Currently, the average household in the U.S. owes approximately $8,600 on credit cards. One of the worse mistakes that Americans can make when it comes to handling their debt is making minimum payments on a regular basis. But approximately one-third of Americans pay the minimum amount due on their credit card each month.
These issues could lead to even worse financial issues down the line. Currently, about 8% of American adults have unpaid debts that have cone into collections, a 3% increase from last year.
“I think everybody really needs to take a look at how they’re managing their debt,” said Bruce McClary, spokesperson for the National Foundation for Credit Counseling.
Another major contributor to the massive debt pileup is the fact that people are spending much more money than they actually have, resulting in not being able to keep up with their bills.
Additionally, the average credit score for U.S. consumers is about 675, four points lower than the 2007 average.
“This is not good news in any way you cut it,” added Gonzalez. “[People are not] remembering the lessons taught during the recession.”