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Credit Card Spending Trends and How O1ne Mortgage Can Help

In the past 12 months, credit card spending has seen a significant increase across the United States. According to Experian data, the average credit card balance rose to $6,365 by the end of June 2023, marking an 11.7% increase from $5,699 in June 2022. This trend is evident across all metro areas in the U.S., with some cities experiencing much higher increases than the national average.

Sharp Increases in Credit Card Balances Along the West Coast

The most notable jumps in credit card balances—those increasing by 15.4% or more—occurred in 25 metro areas, primarily located in the Western U.S. A significant number of these cities are in California, forming a belt of fast-growing balances from El Centro in the south, through the Central Valley to Fresno, Modesto, and Stockton, and extending north to cities in Oregon and Washington, reaching up to the Canadian border.

Metro Areas with the Highest Percentage Increases in Credit Card Balances

While not all cities on this list are large metros, such as Bend, Oregon, with a population of just over 200,000 in 2022, it also includes major cities like Las Vegas, Phoenix, and Portland, Oregon. These areas have seen significant increases in credit card balances, reflecting broader economic trends and regional challenges.

Modest Increases in Credit Card Balances in Other Metros

Conversely, some cities have experienced more modest increases in credit card balances, all less than 8% since mid-2022. These metros are generally smaller cities scattered throughout the Midwest and the South.

Lowest Percentage Increases in Credit Card Balances

Among these 25 metros, the average credit card balance growth ranged from a modest 4.9% increase in Casper, Wyoming, to a still relatively low 8% in Blacksburg, Virginia. These areas have managed to keep their credit card spending more in check compared to their Western counterparts.

The Balance of East and West

So, what’s driving the increases in the Western U.S.? It’s likely a combination of factors, including inflation and rising costs of big-ticket items such as rent, vehicle purchases, and insurance premiums. These costs have affected most U.S. consumers in recent years but are particularly pronounced in California, which is facing a perfect storm of household expense hikes.

Challenges Californians are experiencing include some home and auto insurers no longer writing policies or sharply increasing premiums, smaller cities seeing an influx of new residents moving away from more expensive metros like Los Angeles and San Francisco, and recent layoffs in the tech sector disrupting income flows for many once highly compensated workers. Any of these factors could cause consumers to rely more on credit cards than they have in the past.

How O1ne Mortgage Can Help

At O1ne Mortgage, we understand the financial challenges that come with rising credit card balances and household expenses. Our team of experts is here to help you navigate these challenges and find the best mortgage solutions to fit your needs. Whether you’re looking to refinance your home, consolidate debt, or purchase a new property, we have the expertise and resources to assist you.

Don’t let rising credit card balances and financial stress hold you back. Contact O1ne Mortgage today at 213-732-3074 to speak with one of our experienced loan officers. We’re committed to helping you achieve your financial goals and secure a brighter future.

Conclusion

The increase in credit card spending across the U.S. highlights the importance of managing your finances effectively. By understanding the trends and challenges in different regions, you can make informed decisions about your financial health. At O1ne Mortgage, we’re here to support you every step of the way. Call us today at 213-732-3074 for personalized mortgage services and expert advice.

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