Credit card debt declined in the first quarter of 2024; however, with other types of debt rising, consumers may simply be trading one problem for another. CardRatings’ credit card experts explain why this drop in debt might not actually be good news.
Given the number of Americans struggling with credit card debt, seeing balances owed go down might seem like a cause for celebration; however, other debt trends from the first quarter of 2024 suggest that people are simply trading one form of debt for another.
At the end of 2023, Americans owed a total of $1.129 trillion in credit card debt. During the first quarter of 2024, that debt shrunk by $14 billion. Conversely, total consumer debt rose during this same quarter – by $184 trillion.
CardRatings.com, a leading credit card review and comparison site, examines these figures and discusses the driving force behind these trends in their article: Is the recent drop in credit card debt actually good news?
CardRatings provides tips on credit card refinancing options and discusses the benefits of more accessible solutions such as balance transfer credit cards.
“It is usually encouraging to see credit card debt numbers decrease, but the fact that total debt numbers are still on the rise shows that some people may still be struggling,” says Jennifer Doss, executive editor and credit card analyst at CardRatings. “Instead of using other types of borrowing to help reduce credit card debt, consumers could consider a balance transfer credit card. Though it might seem counterintuitive to open a new credit card to pay off current credit card debt, when used responsibly, these offers can save people a lot of money on interest charges.”
Doss is available to discuss these recent debt trends, as well as general strategies and tips for paying off credit card debt.
About CardRatings
CardRatings is owned and operated by QuinStreet, Inc. (Nasdaq: QNST), a leader in providing performance marketplace technologies and services to the FinTech, financial services and home services industries. QuinStreet is a pioneer in delivering online marketplace solutions to match searchers with brands in digital media. The company is committed to providing consumers with the information and tools they need to research, find and select the products and brands that meet their needs. CardRatings is a member of QuinStreet’s expert research and publishing division.
CardRatings innovated online credit card ratings and has been offering independent ratings and reviews of credit card offers since 1998. The website collects and maintains data on more than 800 credit card offers and carefully compiles objective lists of the top credit cards by card type, making it easy for consumers to find the right card to fit their needs.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240612605617/en/
Contacts
Jennifer Doss
Executive Editor
jdoss@quinstreet.com
