U.S. consumers are on pace to hold more than $1 trillion in credit card debt by the end of 2017, according to a recent WalletHub study.
The study shows that after paying down more than $30 billion in credit card debt during the first quarter of 2017, U.S. consumers proceeded to rack up $33 billion in new credit card debt.
WalletHub is projecting an additional $60 billion in new credit card debt by the end of the year, which would push total credit card debt past $1 trillion. As of the end of the second quarter of this year, outstanding credit card debt is at the second highest point since the end of 2008.
According to WalletHub, U.S. consumers ended 2016 with $87.2 billion in new credit card debt, the most in a single year since 2007 and 130 percent above the post-recession average.
However, despite the sharp ascent in credit card debt, charge-off rates are at historic lows, fueling “lenders’ appetites for extending credit,” although WalletHub expects “there will be a tipping point eventually.”
Average credit card debt per household at the end of the second quarter was $7,996, up more than $400 from the same time last year.