Credit card debt has reached a new high in the United States, topping the record set back in 2008. According to USA Today, "revolving credit, mostly credit cards, increased by $11.2 billion to $1.023 trillion" in November while "non-revolving credit, such as auto and student loans, rose by $16.8 billion to $2.8 trillion."
While some experts see this as a worrying sign, they are not concerned that it will lead to a recession. UBS Credit Strategist Stephen Caprio said that the big difference between now and 2008 is that incomes are higher as is the ratio to credit card debt and the gross domestic product.
Credit card delinquencies also increased to 7.5% which is well below the 15% delinquency rate reached during the financial crisis in 2008 and the historical average of around 9%.
Matt Schulz, senior industry analyst for CreditCards.com says that the best thing consumers can do with their increased income to is pay down their credit cards. He says it is important to pay it off now, instead of waiting, because as the economy continues to improve the federal reserve will raise the interest rates resulting in higher costs for consumers, especially those who carry large debts.