Consumer credit card debt up 14 percent from last July
Despite a 1 percent drop in June, consumer credit card debt is up nearly 14 percent from July 2009. The latest data from the report from CreditKarma, a consumer credit advocate, showed that the average American had $7,752 in credit card debt. Across the country, credit scores remained at 668, down one point since the end of January and down five points since July 2009.
“This month’s data succinctly illustrates the correlation between debt and credit score,” said Ken Lin, CEO of CreditKarma. “Consumers have charged more on their credit cards and as a result, credit scores are lower. We suspect as consumers begin to pay down their debts, credit scores will start to increase again.”
The average American also had $15,080 in auto loans and $28,301 in student loans. Last week, new Federal Reserve statistics showed Americans had more student loan debt than credit card debt for the first time in years.
Consumers struggling with loan or credit card debt could consider consolidation. By combining the debts and taking out a loan with a smaller interest rate, consumers can lower their monthly payments.