Credit Card Debt Approaches Pre-Recession High
It has been several years since the United States went into a recession, but it appears Americans are slipping back into their old ways. According to new research, the average household credit card balance in America will reach $7,813 by the end of 2015, the highest level since 2008 when it hit $8,428.
The country’s outstanding credit card debt is expected to reach $900 billion by the end of this year. While this may be an alarming rate, the good news is that Americans are now maintaining better credit scores than they did nearly a decade ago. The latest reports from FICO show the number of Americans with credit scores of 800 or higher is larger now than it was in 2007, 2009, and 2013. Comparably, the number of citizens with scores below 500 is lower now than it was in preceding years.
The average credit score in America is 695, which is a steady increase since October of 2005 when the average score was 688. This may be partly due to the increased availability of credit information, with many credit card issuers now offering free credit scores as part of their monthly reports. As long as Americans are able to keep their credit scores high in spite of large card balances, it shows they are able to use the money offered to them wisely and responsibly.