Rising Credit Card Debt: Another Byproduct of Washington-Fueled Inflation | Eastern North Carolina Now | Credit card debt jumped again in the second quarter of 2022 as inflation caused people to spend more money to consume the same basket of goods.

Coronavirus Disease 2019 (COVID-19)
    Publisher's Note: This post appears here courtesy of the John Locke Foundation. The author of this post is Paige Terryberry.

    Credit card debt jumped again in the second quarter of 2022 as inflation caused people to spend more money to consume the same basket of goods.

    Americans now hold nearly $890 billion in credit card debt.

    Since the first quarter of this year, credit card balances increased by $47 billion, a 13% year-over-year increase and the largest increase in 20 years, according to a report from the Federal Reserve Bank of New York.

    During the pandemic, credit card balances dropped well below the record levels of 2019. Today's balances are still $40 billion below pre-pandemic levels. But with rising interest rates and inflation, experts say it is only "a matter of time before credit card balances surpass the 2019 record."

    Fifty-four percent of active credit card accounts carried a balance in the second quarter of this year, the third consecutive quarter showing an increase.

    And unfortunately, average annual percentage rates (APRs) are also rising, further endangering those carrying credit card debt. This is expected to continue as the Federal Reserve is poised to announce additional interest rate hikes.

    According to Lending Tree, an online lending marketplace connecting borrowers with loan operators, credit card holders in North Carolina are just below average in the country, holding $6,209 in credit card debt on average; the national average is $6,569.

    Unfortunately, rising credit card debt and APRs are just some of the adverse effects of government-induced inflation. Yet as average Americans are saddled with more debt, the Biden Administration dons rose-colored glasses.

    It would be hard to imagine more misleading messaging from the Biden White House regarding our country's fiscal health.

    President Biden applauds himself for the $1.9 trillion American Rescue Plan Act, student loan forgiveness which could cost more than $1 trillion, and the Inflation Reduction Act, each fueling inflation that burdens poor households most. Biden's Press secretary said President Biden's record on fiscal responsibility was "second to none."

    After yesterday's dismal consumer price index report showing inflation remains high, triggering the worst stock market meltdown in two years, Biden called it "welcome news for American families."

    These harmful policies have consequences - unfortunately, they are shouldered by working Americans. But the Biden Administration attempts to spin the narrative. It is time to send leaders to Washington that will stop the spending sprees and hold politicians accountable for their blatantly false messaging to the American people.
Go Back

Leave a Guest Comment

Your Name or Alias
Your Email Address ( your email address will not be published)
Enter Your Comment ( no code or urls allowed, text only please )

CNN’s Incomplete Thought About “Savings” at the Pump Economic Truths, A Business Perspective, John Locke Foundation Guest Editorial, Editorials, Business, Op-Ed & Politics Big government crushes wealth creation, harms the poor


Latest Op-Ed & Politics

Former President Donald Trump responded to Friday’s big news that the Justice Department was handing over its criminal investigations into him to a special counsel to avoid potential political bias by claiming that the DOJ was being “weaponized” against him.
The FBI has dispatched surveillance teams after several reports surfaced of Christian Nationalists planning to spend a day thanking God for His blessings and praying for America.
The Washington Post slammed President Joe Biden in a statement Friday for shielding Saudi Arabia’s Crown Prince Mohammed bin Salman from a lawsuit on Thursday over his involvement in the murder of Jamal Khashoggi, one of the newspaper’s columnists.
It turned out that some services like speedy justice and border security were provided more efficiently under the Taliban than under Western-influenced bureaucracies.
Program-value and debt-to-income data are sufficient to protect the public interest.
As flagged by Barstool Sports, Qatar just pulled one of the greatest “bait-and-switches” of all times by pulling the plug on beer being sold at the stadium roughly 48 hours before the World Cup is set to kick off in the Islamic nation.
New evidence suggests that some of the people present at Jesus Christ's famous Sermon on the Mount had to sit in an overflow section on the eastern side of the mount where a large jumbotron screen had been set up.
Mike Rowe told Fox News this weekend that men are becoming soft and lazy in part due to how much time they are spending on screens instead of working.


The Biden administration asked the Supreme Court to weigh in on its student loan forgiveness plan on Friday and let the program resume.
Democratic operatives are reviving a partisan watchdog group to “investigate the investigators” and hound House Republicans who are preparing congressional investigations into the Biden administration.
Attorney General Merrick Garland named Jack Smith, a former war-crimes prosecutor, on Friday as special counsel over two Department of Justice (DOJ) investigations into former President Donald Trump.
Local man Robert Thurdriftle took the day off work to tackle some of the 74 different things he had to do but, after puzzling about what to do first, eventually settled on doing nothing.
Senator Rand Paul (R-KY), a fierce defender of American civil liberties, harshly confronted FBI Director Christopher Wray about the communication between social media companies and the FBI regarding social media users’ private information.
Law enforcement in the Bahamas revealed on Thursday that officials seized assets belonging to defunct cryptocurrency platform FTX and moved them to a government-controlled wallet for “safekeeping.”
Few things shock me regarding political campaigns, whether that be an extreme exaggeration of candidates’ positions, overblown scandals spread on social media, or blatant fearmongering to get just a few more voters to come out for their preferred candidate.
Speaking at the 59th Annual Economic Forecast Luncheon in Phoenix, Arizona, Federal Reserve Governor Christopher Waller implied that employers should slow down any wage increases they hand out so that the American economy can temper inflation.
Amid plunging stock price, unprofitable streaming, and a business model intensely focused on sexualizing children as young as possible, Bob Chapek has been ousted from Disney and replaced with former CEO Bob Iger.


Back to Top