US Credit Card Debt Hits $1.18 Trillion As Americans Downplay What They Owe

American credit card debt has surged to an astronomical $1.18 trillion, with a significant number of individuals reportedly concealing their financial predicaments.

What Happened: Nearly 40% of Americans saddled with credit card debt have been dishonest about their financial situation. The report, based on a survey conducted by LendingTree, discloses that individuals with higher income are more prone to hide their debt.

Since 2021, credit card balances have seen a significant increase from a low of $770 billion, a rise partly attributed to government checks issued during the pandemic.

The situation has since deteriorated, with almost half of Americans feeling embarrassed about their debt levels and resorting to downplaying or concealing it.

The report also highlighted that 46% of Americans are now grappling with some form of credit card debt, with half of those earning six figures also in debt.

Also Read: Survey Unveils American Misconceptions About Credit Card Debt Management

Additionally, 35% of women with credit card debt admit to it, as opposed to 21% of men. Baby boomers are more than twice as likely as Gen Zers or Millennials to be honest about their debt.

Why It Matters: Despite the escalating debt, LendingTree asserts that most Americans believe they have their credit card debt under control, irrespective of their comfort level in discussing it with their loved ones.

This alarming trend of increasing debt and the accompanying denial could potentially lead to a financial crisis if left unchecked.

The report underscores the urgent need for financial literacy and transparency in personal finance, to prevent the debt situation from spiraling out of control.

Read Next

Ray Dalio Warns of Looming US Debt Crisis, Says America Faces ‘Economic Heart Attack' Without Fiscal Cuts

Image: Shutterstock/Me dia