The personal-finance website WalletHub today released two key reports, one showing that consumers repaid $40.3 billion in credit card debt during Q1 2018, the second-biggest quarterly paydown ever, and the other finding that a Federal Reserve rate hike on Wednesday would cost people with credit card debt an extra $1.6 billion this year alone.
• At 3.80% for Q1 2018, the charge-off rate is up nearly 6% year over year and at the highest point since mid-2012.
• We began the year owing more than $1 trillion in credit card debt for the first time ever, after adding a post-Great Recession record $91.6 billion to our tab in 2017.
• 37% of people think travel is worth getting into debt for, behind just housing (47%) and health care (61%).
• 89% of people say their personal finances are run better than the federal government.
• 41% of people with credit card debt say they’ll pay it off in less than a year.
• The Fed has cost the average homebuyer roughly $42,000, if you assume its six recent rate hikes are fully responsible for the rise in the average mortgage APR since January 2015.
Cities with the Biggest
Q1 Paydowns Cities with the Smallest
Darien, CT Clarkston, GA
Lake Forest, IL Coachella, CA
Southlake, TX Chelsea, MA
Beverly Hills, CA San Luis, AZ
Dix Hills, NY Cicero, IL