Wednesday, May 29, 2024

A recent survey conducted by Redfield & Wilton Strategies for Newsweek reveals that 55% of Americans are apprehensive about paying off their credit card debt this year. The credit card balances of Americans have reached an all-time high, with data from the U.S. Federal Reserve indicating a rising trend, as individuals turn to credit to cope with the impact of inflation.

American Consumers Turn to Credit Cards to Counter Inflationary Costs

While the latest consumer price index (CPI) report from the U.S. Bureau of Labor Statistics suggests a slight decrease in inflation rates, Americans have resorted to credit cards to alleviate the burden of rising prices. The Newsweek and Redfield & Wilton Strategies poll, which surveyed 1,500 American citizens on May 31, reveals that approximately 30% of respondents carry debts ranging from $1,000 to $5,000. Among Americans aged 22-34, around 22% have accumulated over $10,000 in debt, while the same level of debt is carried by 21% of U.S. citizens aged 35-44.

Melissa Lambarena, a credit cards expert at Nerdwallet, explained to Newsweek that U.S. consumers have increasingly relied on their credit cards to manage the costs associated with inflation. Lambarena noted that rising prices have forced some Americans to depend on credit cards to fulfill their financial needs. According to data from Lendingtree, credit card debt has reached a record high for American consumers, based on consumer debt data from the Federal Reserve Bank of New York.

“A report from Lendingtree highlights that Americans’ total credit card balance in the first quarter of 2023 is $986 billion, according to the latest consumer debt data from the Federal Reserve Bank of New York,” the report states. “This figure remains unchanged from the previous quarter’s record, establishing the highest balance since tracking began in 1999.”

American Credit Card Debt Surges Since Q3 2020, Global Credit Debt Trends Upward

This historic high represents a 17% increase compared to the previous year, signaling that millions of Americans are relying on credit cards more than ever to cover their expenses. Credit card debt had been steadily rising until the onset of the pandemic, and in 2020, it experienced a significant decline as Americans reduced their usage of these financial tools. According to the Newsweek survey, 55% of U.S. residents express significant or moderate concerns about their ability to repay credit card debt this year. The statistics also reveal that this trend is particularly notable among younger age groups, specifically those aged 18-24.

Furthermore, the reliance on credit card charges to make ends meet is not limited to Americans alone, as several sources indicate a global surge in credit card debt. Data shows that the United States currently holds the highest amount of credit card debt, followed by Canada, the United Kingdom, and Japan. In contrast, Italy, Brazil, and India have comparatively lower average credit card debt. Some experts suggest the need for “debt forgiveness” or propose that American consumers could potentially “benefit from payment holidays,” according to the Newsweek poll.

What are your thoughts on the increasing credit card debt amidst rising inflation? Please share your opinions and insights on this topic in the comments section below.

Frequently Asked Questions (FAQs) about credit card debt

What percentage of Americans are concerned about paying off credit card debt this year?

According to a Newsweek poll conducted by Redfield & Wilton Strategies, 55% of Americans are “very” or “fairly” concerned about paying off credit card debt this year.

How has inflation impacted credit card usage in the United States?

Inflation has led Americans to rely more on credit cards to offset rising prices, as indicated by a poll published by Newsweek and Redfield & Wilton Strategies. The survey reveals that a significant number of Americans have accumulated credit card debt to navigate costs associated with inflation.

What is the current credit card debt situation in the United States?

Credit card debt has reached a record high for American consumers, with the total credit card balance reported at $986 billion in the first quarter of 2023, according to consumer debt data from the Federal Reserve Bank of New York. This marks the highest balance since tracking began in 1999.

Has credit card debt increased globally?

Yes, there is a global surge in credit card debt. The United States currently holds the highest amount of credit card debt, followed by Canada, the United Kingdom, and Japan. Conversely, Italy, Brazil, and India have comparatively lower average credit card debt.

Who is particularly affected by the rising credit card debt?

The rising credit card debt trend is particularly pronounced among younger age groups, specifically those aged 18-24. Newsweek’s survey also reveals that 55% of U.S. residents express concerns about their ability to repay credit card debt this year.

More about credit card debt

Newsletter

Subscribe my Newsletter for new blog posts, tips & new photos. Let's stay updated!

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.

Follow us

CryptokenTop

CrypTokenTop is a website dedicated to providing comprehensive information and analysis about the world of cryptocurrencies. We cover topics such as Bitcoin, Ethereum, NFTs, ICOs, and other popular crypto topics. Our mission is to help people learn more about the crypto space and make informed decisions about their investments. We provide in-depth articles, analysis, and reviews for beginners and experienced users alike, so everyone can make the most out of the ever-evolving world of cryptocurrency.

© 2023 All Right Reserved. CryptokenTop

en_USEnglish