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#Business & US Economy Alarm : America’s credit card debt will hit $1 trillion in 2016

America’s credit card debt will hit $1 trillion in 2016.

The report is said to be based on data from the Federal Reserve and the figures indicated that the rising level of outstanding debt was last reached in July 2008, at the helm of the global recession when it reached an all-time high of $1.02 trillion.

According to a report in the Wall Street Journal, America’s outstanding credit card debt will come close to its all-time high figure as it is set to hit $1 trillion in 2016.

The report further pointed out that Americans’ personal savings rate which was 4.4 percent in 2008, currently stands at 5.4 percent. The rate was said to be highest in December 2012, at 11 percent.

Figures showed that a steadier economy and improving job market led to the total level of outstanding credit card debt to rise to $951.6 billion in March. As consumer sentiment rebounded, auto loans were seen to be on the rise too.

On the other hand, the report indicated that the number of credit cards issued also reached the highest level since 2007.

Equifax data reportedly showed that lenders issued 10.6 million credit cards to subprime borrowers in 2015, rising 25 percent from the year prior.
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