As inflation puts pressure on everyone’s budgets, consumers are racking up new credit card debt like there’s no tomorrow.

Californians added 7-point-6 billion dollars to their credit cards the Second Quarter of this year. The average California household tacked on $581 boosting the average owed to $8,505.

WalletHub found California had the biggest debt increase followed by Texas and Florida.

States with the smallest increases were Vermont, Wyoming and the Dakota’s.

This new debt is likely to become even more expensive soon, with the Federal Reserve expected to raise its target rate by 75 basis points on September 21st. WalletHub figures this will cost people with credit card debt an extra $5.3 billion over the next 12 months.

Story Date: September 22, 2022