Photo: Cultura RF
Consumer credit card debt now exceeds $1.2 Trillion dollars. Interest rates on credit cards have reached all-time highs - close to 30% in some cases. Despite these very high levels, consumers appear to be poised to continue piling up even more debt.
According to a recent study by Wallethub, Houston ranks 42nd on a list of consumer debt levels. They project that it will take the average Houstonian as long as 66 months to pay off their credit card debt (Five and one-half years!)
Cassie Happe, Analyst with Wallethub, sees several factors at work. She says that consumer confidence remains high, as worker are confident that their jobs are secure, or they can get another one. While inflation has eroded some buying power, consumers have been slow to modify their spending habits. Holiday purchases may push credit card debts to even higher levels.