By Jorge Vazquez
08 Oct 2023, 08:00 AM EDT
Debt.com, the personal finance site, surveyed more than 1,000 American adults about their credit card use, with 4 in 10 saying inflation has led them to use credit cards to make ends meet. month.
The site notes that after two years of a record inflationary period and multiple interest rate increases by the Federal Reserve, they have caused Americans to go into even more credit card debt.
And because credit card interest rates have skyrocketed so quickly, most respondents (28%) can’t say what their average Annual Percentage Rate (APR) is.
When asked if they considered various debt solutions (from credit counseling to debt settlement or even a balance transfer), 58% had not.
“It’s one thing to identify the enemy and quite another to conquer it,” says Debt.com president Howard Dvorkin. “However, our survey also revealed some concerns that will keep us dependent on our plastic.”
“You can’t get out of debt if you don’t understand what’s keeping you there,” Dvorkin said of those cardholders who don’t even know how much interest they pay each month. “And you certainly can’t get out of debt if you don’t even know your options.”
Main conclusions of the survey:
· More than 3 in 10 say they have maxed out their credit cards in the last two years
· More than 4 in 10 say inflation has led them to use credit cards to make ends meet
· Half “carry a larger monthly balance on their credit card” due to inflation
· Nearly 3 in 10 don’t know what their average credit card APR is
· Apart from inflation, many have become more indebted due to a reduction in their income
· 3 in 5 say they have “never explored solutions to help with their credit card debt”
To consult more details of the survey and its methodology, go here.
Keep reading:
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· Survey shows Americans are using credit cards they can’t afford at alarming rates