The Consumer Financial Protection Bureau (CFPB) has observed a significant increase in credit card debts in 2022, with the mean debt held by cardholders reaching $5,288.

This represents a 24% increase from the previous year’s minimum and is comparable to those observed in late 2019.

The highest levels of debt were found among cardholders with prime credit scores ranging from 660 to 719, with average balances reaching $9,135 by the end of 2022. 82% of the overall debt incurred by consumers in 2022 was classified as revolving debt.

The CFPB warns that if interest rates continue to rise, there may be an increase in long-term debt.

The Federal Reserve’s measures aimed at mitigating inflationary pressures also contributed to the increase in interest rates.

The mean annual percentage rate for private cards increased by over 2 percentage points, reaching 27.7% by the end of 2022.

General-purpose cards’ interest rates also increased from 18.8% in 2020 to 22.7% in 2022.

The CFPB also noted an increase in “chronic debt,” where accumulated interest and fees exceed the amount paid towards the main balance annually.