Credit card debt will cost us an extra $1.46 billion in interest in 2018, study says

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Credit card debt will cost us an extra $1.46 billion in interest in 2018, study says

As of the third quarter of the year (or Q3 2017), outstanding credit card debt is at its second-highest point since the end of 2008.

According to analysts at personal finance website WalletHub, the country will likely rack up more than $50 billion in new credit card debt by the end of the year, meaning we would owe more than $1 trillion in credit card debt overall.

And due to the latest Federal Reserve rate hike, people with credit card debt will see approximately $1.46 billion in extra interest charges in 2018.

“When you factor in the four previous rate hikes, credit card users will wind up paying around $7.4 billion more in 2018 than they would have otherwise,” WalletHub analysts wrote.

Analysts also expect interest hikes for mortgage and auto loan rates.

In Q3 2017, the nation added $22.2 billion in credit card debt, 46 percent higher than the post-Great Recession average and the highest accumulation in a third quarter since 2007.

Last year, the U.S. ended with $87.2 billion in new credit card debt overall, the most for a year since 2007 and 130 percent higher than the post-recession average.

Here’s a look at the average credit card debt per household in Q3 2017 vs. Q3 2016, according to WalletHub:

Average credit card debt per household, according to WalletHub. Screenshot: WalletHub
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