Even the low end of the range is disturbingly high...

Answer: $6,569

Questions:

• Are you surprised by the amount of credit card debt people carry? Why or why not?
• What negative consequences can you think of for carrying a credit card balance from month to month?
• What are some strategies you plan to use to make sure you pay your credit card bill every month (if you plan to use one)?

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (Lending Tree):

"$856 billion. That’s Americans’ total credit card balance, according to the latest consumer debt data from the Federal Reserve Bank of New York. The latest Fed data shows that consumer credit card balances rose to $856 billion in the fourth quarter of 2021. That’s a stunning $52 billion increase from $804 billion in the third quarter of 2021. It is the biggest quarterly increase in the 22-year history of the report and is the third straight quarterly increase but only the third jump we’ve seen since the start of 2020. Even with the huge increase, Americans’ credit card debt is $71 billion below the record set in the fourth quarter of 2019 when balances stood at $927 billion. Credit card debt in America is still high by historical standards, however. It is also light years beyond the $478 billion that we saw 21 years ago in the first quarter of 1999."

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For more credit-related resources, check out the Managing Credit unit page!

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Looking for a fun way to let students practice managing their credit? Play Credit Clash!

About the Author

Ryan Wood

Ryan is the Partnerships and Adoption Manager for Next Gen Personal Finance’s midwest region. He brings his experience as a former teacher, curriculum designer, and sales and marketing professional to state organizations and school districts in supporting the implementation of their personal financial education efforts. He graduated from the University of Wisconsin-Green Bay and earned his teaching credential from Saint Mary’s University in Winona, Minnesota. He proudly taught at two rural high schools in Wisconsin before transitioning to curriculum design at NGPF, and is now excited to be on the front lines in delivering the best possible financial education in the midwest. He and his wife have three beautiful daughters, each of which inspire him to share the impact of being sound financial stewards both at home and as lifelong learners.