U.S. credit card debt has surged nearly 20% in the first quarter of 2023 compared to the same period last year.
- Unsecured personal loan balances also hit record highs, up 26% from a year ago.
Why? More consumers with a higher average credit scores have been carrying credit card balances contributing to a surge in total lines of credit.
- The impact of rising credit card and personal loan debt is likely to be uneven among U.S. consumers, especially as interest rates on credit cards have increased.
- The debt burden might be particularly harsh for consumers with lower credit scores.