46% of Americans are still paying off last summer’s credit card debt

Simone Del Rosario: It’s the most happening travel month of the year. Americans are jetting off to beaches, national parks or theme parks, but nearly half are carrying more baggage than what’s in their luggage. 

According to WalletHub’s 2024 Credit Card Debt Survey, 46% of Americans are still paying down last summer’s credit card balance. 

Christie Matherne: And almost 25% of them reported being very stressed out about it, about their credit card debt in general. And that’s probably because of this next stat, which is nearly half of people said that they carry debt on cards from everyday purchases, which can get really expensive.

Simone Del Rosario: With the average credit card interest rate of nearly 23%, people are quickly falling behind. 

Credit card delinquencies are up across the country, though some cities are increasingly struggling more than others. 

WalletHub says in Chula Vista, California, that’s just outside San Diego, delinquencies are up 85% just in the last year. The city that’s best off is Des Moines, Iowa, where delinquencies are still up, though by a much smaller 19%. 

Christie Matherne: That’s bad news. That’s not great. That means people are late on their credit card bills, they can’t afford to pay minimum payments, and that lands you in further debt with further problems.

Simone Del Rosario: Nearly 1 in 3 people tell WalletHub they’ll have more credit card debt by the end of the year, a year that already started with record-high credit card debt. 

And though 80% of people told WalletHub that paying their credit card debt is a top priority, summer vacations can put a snag in those plans.

Of the Americans traveling this summer, 36% told Bankrate they’re willing to go into debt to pay for it. 

Christie Matherne: I do see the disconnect between that and charging your vacation on a credit card when you’re still paying off last summer’s debt. And it also might be worth saying that people need vacations.

Simone Del Rosario: As much as people need a break, nearly 1 in 3 Americans told Bankrate they’re skipping summer vacation this year because they can’t afford it. 

Credit card debt is not just about personal finances. As more and more Americans carry higher and higher credit card balances, that financial strain stretches beyond the home. 

Christie Matherne: A whole bunch of money is ending up in credit card companies’ hands and less of it is ending up in our communities.

Simone Del Rosario: That slows consumer spending, the most critical component of the U.S. economy. It drives two-thirds of the country’s economic growth. 

Which is why credit card debt and delinquencies can be a harbinger of a downturn if things don’t turn around. 

I’m Simone Del Rosario for SAN.