Half of American now carry credit card debt, many with no plan to pay it off
A Bankrate survey shows 50% of American credit cardholders have debt, the highest since March 2020, with inflation and high interest rates worsening the situation for many.
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A recent Bankrate survey reveals that 50% of American credit cardholders are currently carrying credit card debt, marking an increase from 44% in January 2024 and the highest level since March 2020. Economic pressures, particularly inflation and high interest rates, are contributing factors, with 34% of debtors citing inflation and 32% pointing to interest rates as worsening their debt situation. The survey indicates that credit card debt is prevalent across generations, with 42% of Gen Z, 53% of millennials, 60% of Gen X, and 48% of boomers carrying balances. Additionally, 60% of those with credit card debt have been in this situation for over a year, reflecting a growing difficulty in managing repayments. The survey also highlights that 24% of Americans feel less confident about their ability to pay off their debt compared to early 2022, and 17% worry about meeting minimum payments in the next six months. Despite these challenges, only 42% of debtors have a plan to pay off their credit card debt. The average credit card balance is reported at $6,218, with interest rates exceeding 20%, making it crucial for cardholders to strategize their repayment methods to avoid prolonged debt.
- 50% of American credit cardholders are carrying debt, the highest since March 2020.
- Economic factors like inflation and high interest rates are exacerbating credit card debt.
- 60% of those with credit card debt have been in this situation for over a year.
- 24% of debtors feel less confident about paying off their debt compared to early 2022.
- Only 42% of those in debt have a plan to pay it off.
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8 commentsEveryone I've ever talked to has an antagonistic view of these companies and most other american institutions, and the more you hate them and recognize they hate you, the better off you are financially.
What's really important here are the actual delinquency rates. The only mention of this is:
>And the credit card delinquency rate is at its highest point since 2011.
But the article stops short of mentioning what that rate is or how it has grown.
This type of "investigative journaling" completely misses the point there are tons of credit cards with 12/18/21 months of 0% rates. Of course it makes sense one would carry debt if there's no interest to pay on the balances.
32%?! That is absolute highway robbery at that point. It brings me great anger when I think about the interest rates at which banks typically take out loans. Especially when said loans from banks are then used to loan people money at borderline criminal rates. Best of all, when shit hit the fan, who bailed who out again in 2008?
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