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Understanding Retail Credit Card Debt Trends and How O1ne Mortgage Can Help
In recent years, retail credit card debt has seen significant changes, reflecting broader economic trends and consumer behavior. As we delve into the data from 2022, it’s clear that while retail card debt has increased, it hasn’t grown as sharply as traditional credit card debt. This article explores these trends and offers insights into how O1ne Mortgage can assist you in managing your financial health.
Total Retail Credit Card Debt Increased by 6.5% in 2022
According to Experian data, the total balance on store credit cards grew by $7.3 billion to $118.9 billion in 2022. This 6.5% increase is modest compared to the 16% rise in traditional credit card debt, which reached $910 billion. Inflation played a role in this growth, but the relative size of retail card debt remains much smaller than that of traditional credit cards.
Snapshot: Total Retail Card Debt
| Year | Total Consumer Retail Credit Card Debt |
|---|---|
| 2019 | $125.2B |
| 2020 | $114.9B |
| 2021 | $111.6B |
| 2022 | $118.9B |
Balance Increases Similar Across Credit Scores in 2022
Experian data shows that balances increased at similar rates across all FICO® Score ranges, from 4.4% to 7.3%. These increases were actually less than the rate of inflation, which was 8.2% over the same period.
Average Retail Card Balance by FICO® Score Range
| FICO® Score Range | 2021 | 2022 | Change |
|---|---|---|---|
| 300-579 Poor | $1,264 | $1,356 | +7.3% |
| 580-669 Fair | $1,578 | $1,693 | +7.3% |
| 670-739 Good | $1,645 | $1,718 | +4.4% |
| 740-799 Very good | $839 | $894 | +6.6% |
| 800-850 Exceptional | $352 | $377 | +7.1% |
Average Retail Card Balances Increase Uniformly Across States
All 50 states and Washington, D.C., saw increases in average retail card balances in 2022, ranging from 2.3% to 10.1%. Texas had the highest average balance at $1,443, while Hawaii had the lowest at $761.
Average Retail Card Balance by State
| State | 2021 | 2022 | Change |
|---|---|---|---|
| Alabama | $1,179 | $1,229 | +4.2% |
| Alaska | $1,040 | $1,096 | +5.3% |
| Arizona | $996 | $1,058 | +6.2% |
| Arkansas | $1,188 | $1,228 | +3.4% |
| California | $913 | $988 | +8.2% |
Younger Generations Add to Their Retail Card Balances, Despite Buy Now, Pay Later
Store spending increased the most among younger generations in 2022, with Generation Z and Millennials showing double-digit percentage gains. Generation X had the highest average balances at $1,422, while older generations saw minimal increases.
Average Retail Card Balance by Generation
| Generation | 2021 | 2022 | Change |
|---|---|---|---|
| Generation Z (18-25) | $661 | $736 | +11.3% |
| Millennials (26-41) | $1,079 | $1,195 | +10.7% |
| Generation X (42-57) | $1,343 | $1,422 | +5.8% |
| Baby Boomers (58-76) | $1,009 | $1,032 | +2.2% |
| Silent Generation (77+) | $538 | $541 | +0.5% |
Retail Cards Remain Relevant Despite Alternatives for Consumers
Retail cards have a long history, predating bank-issued credit cards. Despite the rise of alternative payment methods like buy now, pay later and mobile payments, retail cards still play a role in consumer spending. However, the shift towards online shopping and alternative payments is changing the landscape.
How O1ne Mortgage Can Help
At O1ne Mortgage, we understand the complexities of managing credit and debt. Whether you’re looking to consolidate your debt, refinance your mortgage, or purchase a new home, our team of experts is here to help. Contact us today at 213-732-3074 to discuss your mortgage needs and find the best solution for your financial situation.
Don’t let credit card debt hold you back. Reach out to O1ne Mortgage and take the first step towards financial freedom.
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