Credit card debt has hit the highest amount ever in history at $1 trillion. Prices of goods and services are still too high, which is leading to the average person relying more on their credit cards. Typically, increases in card credit usage is an indication of underlying financial problems for the ordinary consumers, such as not paying bills on time.
The demographic at the highest risk of not paying back their credit card are the age groups 18–29 and 30–39. One out of 10 people that have a credit card that is 90 days or more behind. With federal fund rates still increasing, people are still opening credit cards to pay for everyday expenses.
The average credit card interest rate has risen to 20.68 percent, according to WalletHub. Thirty-seven percent of Americans pay off their credit card balance month to month, but 12 percent only make the minimum payments. About 54 million U.S. adults have been in credit card debt for at least a year, and almost half of credit card debt holders have revolving debt month over month.
There are many ways credit card debt holders can help reduce the monthly payments of their revolving debt. Consumers can open up a zero percent interest balance-transfer card. Credit card owners can also call the issuer of the credit card to request for a lower rate.