Amidst high levels of inflation, the average household credit card debt of Alabamians increased by about 7% in the second quarter of 2022.
According to a report released by WalletHub last week, the average credit card debt of Alabama households was $7,791 in the second quarter of 2022, an increase from the previous quarter of $532.
Alabama households paid down a significant chunk of total credit card debt in 2020, but Alabama and many other states are "back to bad habits when it comes to credit card debt," according to the report.
"Following a record-setting reduction in 2020, consumers added a total of $86.2 billion in new credit card debt to their tab during 2021, capped off by a $73.1 billion increase during the fourth quarter alone," the report states. "Now, consumers have started 2022 by paying down just $12.5 billion in Q1 and adding a staggering $67.1 billion in new debt during Q2 – a Q2 record."
The average U.S. household's credit card balance is $8,942, according to WalletHub. In a separate survey last week, WalletHub found that approximately 85% of Americans are concerned about inflation right now.
Alabama was the only state in the Southeast to not offer its citizens any broad-based, major sales or income tax relief in 2021 or 2022.
According to the Tax Foundation, every state in the southeast United States except Alabama implemented or enacted some type of state sales or personal/corporate income tax relief within the past two calendar years.
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