U.S. credit card debt recently hit a record high of $1.13 trillion.
Debt.com’s survey of over 1,000 adults shows that 35% of people have maxed out their credit cards in recent years while inflation and interest rates increased. More than 4 in 10 (45%) of all survey respondents cite price increases from inflation as the reason they used their credit cards to make ends meet. Nearly 9% of all respondents said they got a credit card to pay for a financial emergency.
“In today’s economic landscape, the surge in credit card debt is a stark indication of the financial strain faced by many Americans. With record-high debt levels and a significant portion of individuals maxing out their credit cards, it’s clear that households are grappling with unique challenges,” says Debt.com chairman, Howard Dvorkin, CPA.
Millennials’ Debt Nightmare: Overwhelming Credit Card Burden Hits Young Adults Hard
Thirty-one percent of respondents with at least $10,000 to $20,000 of credit card debt are millennials, while those carrying the highest debt load of $20,000 to more than $30,000, 13% are also millennials.
“Inflation and escalating living costs are forcing individuals to rely on credit cards as a lifeline. While credit cards can offer temporary relief, accumulating debt at a rapid pace is unsustainable and can lead to long-term financial repercussions. People need to exercise caution and seek alternate financial strategies to navigate these turbulent times,” Dvorkin continues.
Parental Influence: How Family and Retailers Shape Americans’ Credit Card Habits
When respondents were asked who introduced them to their first credit card, 32% said their parents, while 26% said retail stores offered them the first credit card and 12% said it was their school, university, or college.
“It’s enticing when we get those credit card offers, and exciting to get that first card; but cash is still the best way to pay. Anything you buy, try to pay cash. If you must use your card, pay off the…
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