{"id":7505,"date":"2023-05-11T19:33:06","date_gmt":"2023-05-11T23:33:06","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/u-s-credit-card-debt-jumps-nearly-20-in-the-first-quarter-transunion-says\/"},"modified":"2023-05-11T19:33:07","modified_gmt":"2023-05-11T23:33:07","slug":"u-s-credit-card-debt-jumps-nearly-20-in-the-first-quarter-transunion-says","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=7505","title":{"rendered":"U.S. credit-card debt jumps nearly 20% in the first quarter, TransUnion says"},"content":{"rendered":"
\n

U.S. credit-card debt rose by nearly 20% in the first quarter when compared to a year earlier, hitting $917 billion as consumers tried to cope with higher prices, first-quarter\u00a0data from TransUnion released Thursday shows.\u00a0<\/p>\n

Balances for unsecured personal loans also smashed records at $225 billion, rising about 26% in the first quarter from a year ago.<\/p>\n

\n

Average credit-card debt per borrower hit $5,733 in the first quarter, while the average personal-loan balance per borrower reached $11,281 \u2014 or nearly 16% of the U.S. median household income of\u00a0$70,784, TransUnion said.<\/p>\n

Though\u00a0consumer-price increases are cooling off from last year\u2019s\u00a0spike, certain big expenses like\u00a0rent\u00a0and\u00a0car prices\u00a0are still far above pre-pandemic levels, potentially putting some families in a bind. <\/p>\n

Credit-card originations, meanwhile, continued to remain elevated at the beginning of this year at 20.64 million, even as companies appeared to pull back from opening new subprime accounts amid higher delinquencies, TransUnion said. The share of subprime consumers carrying card balances also dropped to 10.2% in the first quarter from 10.9% at the end of 2022, \u201cending a trend of seven consecutive quarters of growth for the subprime segment,\u201d according to TransUnion.\u00a0<\/p>\n

\u201cWe have continued to see increases in both the balances as well as originations,\u201d Michele Raneri, vice president of U.S. research and consulting at TransUnion
\n TRU,
\n +0.95%<\/bg-quote>,<\/span>
\n told MarketWatch. \u201cOriginations have also exceeded 20 million in five of the past six quarters. Consumers are continuing to use credit as they figure out this post-pandemic economy and figure out how they\u2019re going to grow during this inflationary time period.\u201d\u00a0<\/p>\n

<\/p>\n
\n

\n \u201c<\/span>\u2018We have continued to see increases in both the balances as well as originations.\u2019\u201d<\/span>\n <\/p>\n


\n \u2014 Michele Raneri, vice president of U.S. research and consulting at TransUnion<\/span>
\n <\/small><\/p><\/div>\n<\/p><\/div>\n

Raneri noted\u00a0that since the average credit score\u00a0has\u00a0increased during the pandemic, more people might be considered \u201csuper-prime.\u201d That may help explain why TransUnion\u2019s first-quarter data showed that, in contrast to subprime consumers, 41.8% of super-prime consumers were carrying a balance, up from 40.6% the previous quarter. Total lines of credit also hit $4.4 trillion in the first quarter, up $391 billion from a year ago, in a trend largely driven by an increase among super-prime borrowers, TransUnion said.\u00a0<\/p>\n

Still, the impact of credit-card and personal-loan debt will likely be unevenly felt among U.S. consumers. While credit-card balances have been creeping toward\u00a0$1 trillion\u00a0nationwide, interest rates on cards have soared, too, making that kind of debt even more expensive: Bankrate recorded an average rate of\u00a020.33% as of Wednesday. Rates can be even higher for\u00a0consumers with lower credit scores, who are\u00a0more likely to be Black and Hispanic.\u00a0<\/p>\n

To be sure, first-quarter credit card balances were down slightly by 1.5% from the fourth quarter, when\u00a0debt levels are usually higher due to holiday shopping.\u00a0The Federal Reserve Bank of New York reported that at the end\u00a0of last year, credit-card balances hit $986 billion.\u00a0<\/p>\n

\u201cPeople need to recognize what their spend is compared to their budget,\u201d Raneri said. \u201cIf you look back at the pandemic, people had less that they were purchasing, they had stimulus [checks], and so they had lower balances than usual \u2014 and they had really low delinquencies because they were able to pay their bills off well. Now, as we emerge out of that \u2014 and I feel like we\u2019re getting to the point of it coming back to being normal \u2014 consumers are looking at how to use credit.\u201d\u00a0<\/p>\n

Consumers\u2019 accumulated personal savings hit an estimated peak of about $2.1 trillion through August 2021 as the federal government pumped money into expanded unemployment insurance, extra child tax credits and stimulus checks, but about $1.6 trillion of that has since been drawn down, researchers at the\u00a0Federal Reserve Bank of San Francisco said this week.\u00a0<\/p>\n

Meanwhile, overall credit-card balances were already almost 20% higher in this year\u2019s first quarter than the same period in 2022, TransUnion said, with the average balance per consumer being up by 14.4%.\u00a0<\/p>\n

Balances on unsecured personal loans increased by a far higher 26.3% on an annual basis in the first quarter to reach their highest level on record, though annual growth rates have now been slowing down for two consecutive quarters, \u201cwhich may be a sign that lenders are showing more scrutiny in making underwriting decisions,\u201d according to TransUnion.\u00a0<\/p>\n

Though all \u201crisk tiers\u201d have seen double-digit growth in personal-loan balances in the past year, subprime consumers were leading the pack with a 40% rise in the first quarter compared to a year ago, trailed only by super-prime consumers, who saw their balances increase by 34% in the same period. Subprime consumers have also seen the most significant decline in originations, down 18.2% in the first quarter from a year earlier, TransUnion said.<\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

U.S. credit-card debt rose by nearly 20% in the first quarter when compared to a year earlier, hitting $917 billion as consumers tried to cope with higher prices, first-quarter\u00a0data from TransUnion released Thursday shows.\u00a0 Balances for unsecured personal loans also smashed records at $225 billion, rising about 26% in the first quarter from a year […]<\/p>\n","protected":false},"author":1,"featured_media":7506,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[236],"tags":[83],"class_list":["post-7505","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-news","tag-featured","post_format-post-format-gallery"],"yoast_head":"\nU.S. credit-card debt jumps nearly 20% in the first quarter, TransUnion says | iFintechWorld<\/title>\n<meta name=\"description\" content=\"U.S. credit-card debt rose by nearly 20% in the first quarter when compared to a year earlier, hitting $917 billion as consumers tried to cope with higher\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=7505\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"U.S. credit-card debt jumps nearly 20% in the first quarter, TransUnion says | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"U.S. credit-card debt rose by nearly 20% in the first quarter when compared to a year earlier, hitting $917 billion as consumers tried to cope with higher\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=7505\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-05-11T23:33:06+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-05-11T23:33:07+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/05\/1683847987_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=7505#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=7505\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"U.S. credit-card debt jumps nearly 20% in the first quarter, TransUnion says\",\"datePublished\":\"2023-05-11T23:33:06+00:00\",\"dateModified\":\"2023-05-11T23:33:07+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=7505\"},\"wordCount\":782,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=7505#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=7505\",\"url\":\"https:\/\/ifintechworld.com\/?p=7505\",\"name\":\"U.S. credit-card debt jumps nearly 20% in the first quarter, TransUnion says | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-05-11T23:33:06+00:00\",\"dateModified\":\"2023-05-11T23:33:07+00:00\",\"description\":\"U.S. credit-card debt rose by nearly 20% in the first quarter when compared to a year earlier, hitting $917 billion as consumers tried to cope with higher\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=7505#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=7505\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=7505#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"U.S. credit-card debt jumps nearly 20% in the first quarter, TransUnion says\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"U.S. credit-card debt jumps nearly 20% in the first quarter, TransUnion says | iFintechWorld","description":"U.S. credit-card debt rose by nearly 20% in the first quarter when compared to a year earlier, hitting $917 billion as consumers tried to cope with higher","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=7505","og_locale":"en_US","og_type":"article","og_title":"U.S. credit-card debt jumps nearly 20% in the first quarter, TransUnion says | iFintechWorld","og_description":"U.S. credit-card debt rose by nearly 20% in the first quarter when compared to a year earlier, hitting $917 billion as consumers tried to cope with higher","og_url":"https:\/\/ifintechworld.com\/?p=7505","og_site_name":"iFintechWorld","article_published_time":"2023-05-11T23:33:06+00:00","article_modified_time":"2023-05-11T23:33:07+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/05\/1683847987_social.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=7505#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=7505"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"U.S. credit-card debt jumps nearly 20% in the first quarter, TransUnion says","datePublished":"2023-05-11T23:33:06+00:00","dateModified":"2023-05-11T23:33:07+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=7505"},"wordCount":782,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["News"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=7505#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=7505","url":"https:\/\/ifintechworld.com\/?p=7505","name":"U.S. credit-card debt jumps nearly 20% in the first quarter, TransUnion says | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-05-11T23:33:06+00:00","dateModified":"2023-05-11T23:33:07+00:00","description":"U.S. credit-card debt rose by nearly 20% in the first quarter when compared to a year earlier, hitting $917 billion as consumers tried to cope with higher","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=7505#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=7505"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=7505#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"U.S. credit-card debt jumps nearly 20% in the first quarter, TransUnion says"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/7505","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7505"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/7505\/revisions"}],"predecessor-version":[{"id":7507,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/7505\/revisions\/7507"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/7506"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7505"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7505"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7505"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}