New reports reveal that credit card debt is on the rise, with nearly half of cardholders carrying a balance month to month. The average balance is now $6,380, and high interest rates are making it difficult for many to pay off their debts.
Almost half, 48%, of credit cardholders carry debt from month to month, according to a new report. That's up from 44% at the start of 2024. Of those carrying balances, 53% have been in debt for at least a year. Roughly 47% of borrowers said they carry a balance due to an unexpected or emergency expense, most commonly medical bills or car and home repairs. Others cite higher day-to-day expenses and general overspending.
'High inflation and high interest rates have been a nasty combination, and while the worst is behind us, the cumulative effects are significant and will linger,' Ted Rossman, Bankrate's senior industry analyst, said in a statement.The average balance per consumer now stands at $6,380, up 4.8% year over year, according to the latest credit industry Feeling out of the loop? We'll catch you up on the Chicago news you need to know. Sign up for the weekly By way of example: With annual percentage rates just over 20%, if you made minimum payments toward the average credit card balance ($6,380), it would take you more than 18 years to pay off the debt and cost you more than $9,344 in interest over that time period, Rossman calculated.According to another report by WalletHub, 24% of Americans said they will need more than six months to pay off their holiday shopping debt. In that survey, most consumers said inflation caused them to spend more than they initially planned. 'Many people need months to repay holiday bills after overspending,' said John Kiernan, editor at WalletHub.for those struggling to pay down credit card debt is to consolidate with a 0% balance transfer card, Bankrate's Rossman said. 'You could pay about $300 per month and knock out the average credit card balance in 21 months without owing any interest,' he sai
CREDIT CARD DEBT INTEREST RATES CONSUMER DEBT PERSONAL FINANCE ECONOMY
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