An internal study by Debt.com shows how the average American is faring during a period of high inflation, with U.S. credit card debt recently reaching a record $1.13 trillion.
In a survey of 1,000 adults, 1 in 3 (35%) say they have “maxed out their credit cards in recent years, as inflation and interest rates have risen.”
Of those respondents, 8 in 10 (85%) say that “price increases due to inflation forced them to use their credit cards to make ends meet.”
The survey also found that 1 in 5 (22%) has a credit card debt of at least between $10,000 and $20,000. Among them, just over 5% owe more than $30,000.
Key Survey Findings:
- More than 4 in 10 (45%) of all respondents say that “price increases due to inflation forced them to use credit cards to make ends meet.” This includes 2 in 3 (67%) Millennials and half (53%) of Gen Xers.
- 35% report having maxed out their credit cards in recent years. This group is made up of 17% of Generation Z, 49% of Millennials, 23% of Generation X, and 11% of Baby Boomers.
- More than half (55%) of all respondents need credit cards to pay for a financial emergency. Nearly 3 in 4 (73%) are Millennials, and more than half (55%) are women.
- More than half (51%) say inflation has “caused them to carry a higher monthly balance on their credit cards.” Of those respondents, 3 in 10 (32%) have at least between $10,000 and $20,000 in credit card debt. This includes 3 in 10 (31%) Millennials.
- Nearly 3 in 5 (58%) of all respondents have never considered professional or do-it-yourself credit card debt solutions, such as debt management and settlement programs; the majority of these (48%) are Baby Boomers.
- A greater share of respondents (41%) with at least between $10,000 and $20,000 in credit card debt are Millennials.
For more details on the survey and its methodology, click here.
Image: DiarioNY
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Federico Rodriguez1,592 stories published
Writes for El Hispano Para Todos, the newspaper of the Latino community of Palm Beach and the Treasure Coast.
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