Most US consumers rely on credit card debt to navigate inflation-related costs, report from the Bureau of Labor Statistics indicates a cooling of inflation in the United States, Americans have shifted to credit cards to offset the rising prices.
Credit Card Debt
In a poll published by Newsweek which surveyed 1,500 American citizens on May 31, approximately 30 percent of respondents have credit card debt ranging from $1,000 to $5,000. Aged 22-34 amount Americans around 22 percent have accumulated over $10,000 in debt, while 21 percent of US citizens aged 35-44 also sustain the same level of debt.
Credit card expert at Nerdwallet Melissa Lambarena has stated that most consumers have been actively utilizing their credit cards to steer costs associated with inflation.
The Nerdwallet executive noted that the increasing costs have pushed some Americans to count on their credit cards to meet their financial demands. According to statistics from LendingTree, credit card debt has achieved a record high for American consumers, citing consumer debt data from the Federal Reserve Bank of New York.
American Credit Card Debt Has Been Growing And Has Surged On A Global Scale
According to Newsweek’s survey, 55 percent of US residents express significant or moderate concerns about their ability to repay credit card debt this 2023. The statistics show that younger generations, specifically those aged 18-24 exhibit this trend the most.
Moreover, Americans are not the only ones relying on credit card charges to make ends meet, as multiple sources indicate a global surge in credit card debt.
Data displays that the United States currently maintains the highest record of credit card debt, followed by Canada, the United Kingdom, and Japan. Conversely, Italy, Brazil, and India have comparatively more subordinate average credit card debt.