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Visualizing America’s $1 Trillion Credit Card Debt

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America's $1 trillion Credit Card debt

Visualizing America’s $1 Trillion Credit Card Debt

Americans’ collective credit card debt surpassed $1 trillion for the first time in Q2 2023.

Between April 1 and June 30, total credit card balances rose by $45 billion compared to Q1 2023, to $1.03 trillion.

This chart uses data from the Federal Reserve Bank of New York and WalletHub to illustrate the growing credit card debt in the United States.

Over $10,000 Balance per Household

After a sharp contraction in the first year of the pandemic, credit card balances have experienced seven consecutive quarters of year-over-year growth.

In Q2 2023, credit card balances saw the most significant increase among all debt types, including auto loans, student loans, and mortgages.

The average household credit card balance was $10,173.87 in June, $2,242.77 below the record set in Q4 2007.

household credit card debt

As the Federal Reserve has increased interest rates at a record pace, banks have followed suit.

The average credit card charges around 21% interest rate on overdue payments, nearly five percentage points higher than in 2022.

Rising Balances May Present Challenges

Credit cards stand out as the most prevalent form of household debt in the U.S. and this prevalence is on an upward trajectory.

According to the Federal Reserve Bank of New York, credit card issuance has been steady over the last few years, averaging about 92 million newly issued cards each year between 2017 and 2019. The pandemic caused a sharp contraction in new credit card issuance, but lending returned across all credit score groups in 2021.

There are currently 70 million more credit card accounts open than in 2019. Approximately 69% of Americans now possess at least one credit card.

“American consumers have so far withstood the economic difficulties of the pandemic and post-pandemic periods with resilience,” New York Fed researchers wrote.

“However, rising balances may present challenges for some borrowers,” they added, “and the resumption of student loan payments this fall may add additional financial strain for many student loan borrowers.”

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Personal Finance

Mapped: Federal Tax Paid Per Capita Across Canada

We show which provinces and territories pay the most and least tax after adjusting for the number of tax filers in each jurisdiction.

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A Canadian map of federal tax paid per capita with the values for BC, Alberta, NWT, Ontario and Quebec as question marks

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The following content is sponsored by Fidelity Investments

Mapped: Federal Tax Paid Per Capita Across Canada

Which parts of Canada pay the most personal tax? In 2021, according to the latest available data, people in Ontario paid by far the greatest share: 42% of the total. Of course, Ontario is also the most populated province.

But if we look at which parts of the country paid the most and least taxes on a per capita basis, the picture looks different. In this graphic from Fidelity Investments, we show the amount paid per tax filer for each province and territory.

A Breakdown of Tax Per Person

We took the total personal federal tax paid in each province according to 2021 tax filing data from the Canada Revenue Agency. We then divided the total tax paid by the number of people filing taxes in the province. Below, we rank the provinces and territories from least to most taxes on this basis.

Province or TerritoryFederal Tax Paid Per Person
New Brunswick$4,186
Prince Edward Island$4,491
Nova Scotia$4,708
Manitoba$5,001
Newfoundland and Labrador$5,033
Quebec$5,352
Saskatchewan$5,596
Nunavut$6,314
British Columbia$6,828
Yukon$6,897
Ontario$6,969
Alberta$7,608
Northwest Territories$7,876
All of Canada$6,368

All of Canada is calculated as the total federal taxes paid in Canada divided by the total number of tax filers in Canada.

New Brunswick paid the least taxes on a per capita basis. Within the province, 13% of people worked in retail jobs, the highest proportion nationally. Retail positions in New Brunswick earned $34,000 annually on average. As a whole, 71% of people in New Brunswick earned less than $49,000 per year.

The Highest Taxes Per Capita

The Northwest Territories (NWT) paid the most taxes relative to the number of tax filers. Public administration workers made up nearly a quarter of tax filers, four times the national share of 6%. These workers, which include local, provincial, federal, and aboriginal government employees, had an average annual income of $120,000 in the NWT.

Additionally, the territory also had a relatively high proportion of people working in mining, who earned $221,000 a year on average.

However, it’s important to note that the NWT faces a high cost of living. On average, households in the capital city of Yellowknife paid 28% more for food and 47% more for shelter than the average Canadian household in 2021.

On a per person basis, Ontario paid the third highest taxes in Canada. The province had the highest proportion of finance and insurance workers, who earned $106,000 annually.

Reducing Your Taxes

Generally, a higher income leads to higher taxes. However, you can explore allowable deductions such as RRSP contributions to save more of your money.

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Use Fidelity’s income tax calculator to quickly estimate your taxes.

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