Credit Card Debt Spirals as Interest Rates Soar

Half of Americans are carrying credit card debt from month to month with no repayment plan, according to a recent Bankrate survey. Soaring interest rates (currently 24.92% on average) mean this debt is costing Americans more as their savings erode.

Key Stats:

• 50% of cardholders carry debt over, up from 44% in Jan (Bankrate survey)
• 36% of US adults' card debt > emergency savings (Bankrate)
• Avg. credit card debt: $7,951 (Federal Reserve/Census) & $6,501 (Experian)
• 58% have no plan to pay off cards (Bankrate survey)

Tips to Tackle Debt:

• Cut discretionary spending to pay more than the monthly min.
• Use tax refunds, bonuses, side gig money to reduce debt. (Bankrate)
• Get a 0% balance transfer card to pause interest temporarily. (Bankrate)

"Since the beginning of 2021, credit card balances have been off to the races. High inflation and high-interest rates have eroded Americans' savings," says Ted Rossman, Senior Credit Card Analyst at Bankrate. [Source]