From the beginning of 2022 to the end of 2023, credit card APRs spiked from 16.6% to 22.8%. For credit card users who do not settle their balances in full each month, these elevated interest rates can lead to a rapid compounding of the total amount owed. Nationally, nearly 43% of adults acknowledge occasionally carrying a balance and incurring interest on their credit cards—an audience that stands to gain the most from future interest rate declines that are expected in 2024. However, variations in consumer credit utilization and their propensity to accrue interest mean certain states are experiencing the impact of elevated interest rates more than others.

To determine which states would benefit most from credit card interest rate declines, researchers calculated—by state—the percentage of survey respondents who reported sometimes carrying a credit card balance, and subsequently paying interest.

These are the key takeaways from the report, highlighting some key stats for Georgia:

• Total credit card debt in the U.S. surpassed $1 trillion for the first time in 2022, and throughout that year, card issuers levied over $130 billion in interest and fees. This equates to more than $1,000 in credit card interest and fees per U.S. household.

• In Georgia, 46.5% of cardholders sometimes carry a balance and pay interest on their credit card.

• Some engage in other costly credit card behaviors as well: 39.6% of Georgia cardholders say they sometimes only make the minimum payment, while 16.3% use it for cash advances.

• The states where larger percentages of cardholders sometimes carry a balance and accrue interest are the states whose residents would benefit most from declining interest rates.

• Overall, Georgia has the 12th largest share of cardholders who sometimes carry a balance and pay interest on their credit cards.

Despite increased costs and high interest rates, U.S. households have not been deterred from spending their money. According to the Bureau of Economic Analysis, consumer spending¹ in the U.S. increased by 24.1% from the first quarter of 2021 to the last quarter of 2023, which, in turn, led to a notable uptick in credit usage.

Total credit card debt² in the U.S. surpassed $1 trillion for the first time in 2022, and throughout that year, card issuers levied over $130 billion in interest and fees. This equates to more than $1,000 in credit card interest and fees per U.S. household. However, variations in consumer credit utilization and their propensity to accrue interest — most commonly by not paying off their bill in full each month — have created disparities among states. Because of this, certain states are experiencing the impact of elevated interest rates more than others.

For the full report visit upgradedpoints.com