Dive Brief:
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U.S. consumers acquired their biggest surge in credit card debt in six years, according to a study released Thursday by CardHub.com.
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The $38.2 billion net increase in credit card debt is an 8% increase from 2012, leading CardHub to estimate a $41.2 billion increase in consumer debt in 2014, according to the study.
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The average household’s credit card debt is now $6,802, an increase from an average of $6,682 in Q1 this year. CardHub estimates that will rise to more than $7,000 by the end of the year.
Dive Insight:
The increase in Americans’ average outstanding credit card balances reflects a propensity to spend more in a healthy economy, but it could nevertheless hamper consumers' holiday spending, Business Insider reports. Because of this, retailers may still be inclined to use discounts to entice U.S. shoppers to pull out their credit cards at the holidays.