NEW YORK–With credit card debt at an all-time high, and nearly half of all Americans saying they are carrying such debt, 70% also say they believe they will be able to pay off their balance within five years, according to a new survey.
Americans have approximately $1.2-trillion in card debt on cards with average rates of 20%, Bankrate is reporting.
What Survey Found
According to Bankrate’s new survey:
- 64% of credit card debtors, defined as credit cardholders who carry a balance month to month, have delayed or avoided other financial decisions because of their credit card debt.
- 48% of credit cardholders report having a credit card balance.
- Among credit card debtors, 47% say their debt comes from emergency/unexpected expense(s), including medical bills (15%), car repairs (9%), home repairs (7%) or some other emergency or unexpected expense (16%). Twenty-eight percent cited day-to-day expenses such as groceries, childcare and utilities.
- Credit card debtors say they’ve put off helping family and/or friends (19%), donating to charity (17%), % on wellness (17 percent, e.g., gym fees, weight management programs, meal delivery services), spending on healthcare (17% , e.g., medical procedures, medication) and making home purchases (13 percent).
- Debtors have delayed continuing education and/or job-related training courses (8%), different and/or new employment (7%), having children (5%) and getting married (5%).
The full Bankrate analysis can be found here.
