A credit card is deemed to be a financially helpful tool but only if used responsibly. Otherwise, it would bury you in enormous debt.
These stats reveal beyond shocking conditions of credit card debt in The United States of America.
According to the recent survey by GOBankingRates, 30% of Americans own credit card debt between $1,001 and $5,000, other 15% have $5,001 or more in credit card debt, and about 6% are in credit card debt of $10,000.
To make the most out of a credit card, you should look out for the best offers that can help to keep the balance under control.
Credit Card are said to cover essential expenses for Americans
Credit cards have many advantages starting with building credit, sorting out big expenses and earning rewards.
Another survey conducted by Inside 1031 found that 49% of Americans depend on credit cards to cover essential living expenses. Most of the people in this percentage come from younger generations.
Furthermore, nearly half of Americans admit to relying on a credit card to cover a $2,000 emergency.
Adding to this fact is that thirty-seven per cent don’t have more than $1,000 for emergency savings. Thirteen per cent don’t even have an emergency saving.
Thus, with the advances of a credit card comes responsibilities also, the full balance should be paid on time. If not, one will have to pay interest charges and fees
The Pandemic has resulted in more credit card debt in America
Covid has resulted in a major economic setback for the world. Unemployment surged with the worldwide lockdown.
Seemingly, the pandemic affected the stats of debt in America also.
According to the survey, nearly half of all Americans have taken up more credit card debt from March 2020 onwards
Additionally, individuals carrying credit card balances from month to month can report having more debt in the pandemic. Moreover, credit card debt would likely be more than twice now in pandemic for some people.