Americans are more likely to take out credit cards as the skyrocketing cost of basic necessities continue to be a burden.
Recent research has shown that Survey from CreditCards.com commissioned by YouGov, 60 percent of Americans have been carrying monthly credit card debt for at least 12 months –– a ten percent increase from 2021.
A further 40% say they carry balances for at minimum two years. 28 percent have carried them for three to five years. 19% for more than five.
This survey shows that 59% of American credit cardholders earn less than $50,000 and have a credit card balance each month.
This percentage drops to 49% for people earning $50,000-$80,000, and to 46 percent for individuals earning $80,000-$100,000.
American families relied increasingly on credit cards as the price rises at an unprecedented pace in recent decades. https://t.co/UDBQjzW6M0
— Breitbart News (@BreitbartNews) August 2, 2022
The total amount of credit card debt in America is $887 billion. As per The Federal Reserve Bank of New York report.
“Credit card debt is easy to get into and hard to get out of,”According to Ted Rossman (a Senior Analyst at Creditcards.com), “High inflation and rising interest rates are making it even harder to break free.”
The consumer prices of basic necessities are rising as well, which means that there is a greater likelihood that Americans will take out credit cards to cover these costs.
Consumer grocery prices rose by 0.7 percent from July to August, while the price The U.S. Bureau of Labor Statistics reported that the average home-cooked meal increased by 13.5 per cent over the prior year.
Breitbart news reports that even though gasoline dropped 10.6% from July to august, it still rose by astounding 25.6% from last year. noted.
Fifty-six percent of Americans say President Joe Biden’s 40-year-high inflation has caused them hardship, up from 49 percent in January and 45 percent in November, a Gallup poll found this week. https://t.co/5axxAh8o9s
— Breitbart News (@BreitbartNews) September 10, 2022
Under President Joe Biden, the overall consumer price index rose 8.3% since August 2021.
This survey included 2,419 adults in the United States. 1,834 of them have credit cards, while 879 maintain credit card balances month-to-month.
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