Credit card balances climb, according to fresh data from the Federal Reserve Bank of Philidelphia. The Points Guy senior editorial director Nick Ewen joins Wealth with Brad Smith to discuss what a revolving credit card balance is and what it signals about the state of the consumer.
Revolving credit card balances, which are the portion of credit card spending that goes unpaid at the end of the billing cycle, sitting at $645 billion indicates “a lot of consumers are really relying on credit cards to make ends meet,” Ewen says. He adds, “You have prices that are still rising, albeit not as quickly as they were a couple of years ago, but the incomes are not keeping up with that.”
Ewen highlights the “Number one most important thing” for consumers using credit cards is to remember that “just making those minimum payments a new credit card is not an excuse to spend beyond your means, no matter how lucrative those rewards are. Any interest, any late payments for not paying that bill on time, is going to eat into the value of those points.”
Watch the video above to learn about expected 2025 credit card trends, travel credit card rewards, and more.
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