Americans Finding It Difficult To Pay Credit Card Dues On Time; Delinquency Rises Amid All-Time-High Interest Rates
A larger number of U.S. consumers are having a tough time paying off credit card dues every month in an environment of elevated inflation, with those making lower income less likely to clear their debts while accruing greater interest payments.
Roughly 46 percent of credit card holders do not pay off their dues in full each month, according to data from Bankrate in December.
This is up from 39 percent a year back.
Roughly 43 percent of those with credit card debt are not aware of the interest rates charged on their cards.
“People may not be fully aware of how expensive credit card debt—or other alternative loans—are, and that interest on these loans compounds,” Michaela Pagel, a Columbia Business School professor, said to Bloomberg.
“If somebody rolls over $5,000 of credit card debt over five years, it balloons into $12,441 at 20 percent interest.”– READ MORE
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