More Americans are racking up credit card debt
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A growing number of Americans are racking up credit card debt in order to pay for their everyday necessities, a trend that may be a harbinger of economic troubles ahead, according to a new report from Bankrate.
Findings published by Bankrate on Monday indicate that nearly half of credit card holders – about 49% – are carrying credit card debt from month to month. That marks a sharp increase from just two years ago, when about 39% of Americans with credit cards carried debt from month to month.
More than half of Americans carrying credit card debt have done so for over a year.
Even more concerning is that of those holding credit card debt, 10% do not think they will ever be able to pay off their bills. Another 25% expect they will pay off their debt at some point – but that it will be at least five years in the future.
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Visa Inc. credit and debit cards are arranged for a photograph in Washington, D.C., on April 22, 2019. (Photographer: Andrew Harrer/Bloomberg via Getty Images / Getty Images)
«While Americans are managing their credit card debt pretty well, all things considered, we are seeing pockets of trouble at the household level,» said Ted Rossman, Bankrate senior industry analyst. «If you have credit card debt, this is probably your highest-cost debt by a wide margin.»
The most common reason that Americans turned to their credit card was an emergency or unexpected expense, including medical bills, car repairs and home repairs. Individuals also blamed day-to-day expenses for the increase in
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