The recent consumer price index report suggests that inflation in the United States is cooling down. However, many Americans are still turning to credit cards to cope with rising prices. A poll conducted by Newsweek and Redfield & Wilton Strategies found that around 30% of respondents have debt ranging from $1,000 to $5,000. Among Americans aged 22-34, 22% have accumulated over $10,000 in debt, and the same level of debt is carried by 21% of those aged 35-44.
Melissa Lambarena, a credit cards expert at Nerdwallet, stated that consumers have been using credit cards to navigate the costs associated with inflation. Increasing prices have forced some Americans to rely on their credit cards to meet their financial needs. Data from Lendingtree shows that credit card debt for American consumers has reached a record high, remaining unchanged from the previous quarter.
Credit card debt has been steadily rising since Q3 2020, and the pandemic caused a significant decline in 2020. However, it has now surged globally. According to Newsweek’s survey, 55% of U.S. residents express concerns about their ability to repay credit card debt this year, especially among younger age groups. The United States holds the highest amount of credit card debt, followed by Canada, the United Kingdom, and Japan. Italy, Brazil, and India have comparatively lower average credit card debt. Some experts suggest debt forgiveness or payment holidays as potential solutions for American consumers.
Continue reading on Bitcoin.com
By
By
By
By