The amount of credit card debt owed by Americans rose by $17 billion in the third quarter of 2021, according to the latest data from the Federal Reserve Bank of New York. The figure continued to rise rapidly in the fourth quarter amid the holiday season. Debt levels are expected to increase by $70 billion by the end of the year, according to projections by financial portal WalletHub. The average U.S. household in the U.S. currently has $8006 in credit card debt, WalletHub reported.

Experts predict that debt will continue to increase in 2022, with a 10 percent increase in the first quarter compared to the same period a year earlier. This is because more consumers will leave credit card applications and increase spending, according to TransUnion’s forecast. Credit card debt typically declines in the first few months of the year as borrowers pay off holiday spending debts. By the fourth quarter of 2022, total debt is expected to reach $805.7 billion, TransUnion forecasts. That would be the highest since the coronavirus pandemic began. “The consumer environment is looking more and more like it did before the pandemic,” said TransUnion Director of Global Research and Consulting Charlie Wise. “With deferral programs expiring and stimulus funds dwindling, demand for credit is increasing,” he said