Credit Card Debt is prominent in those filing bankruptcy.
Most debtors hold much more than 1 credit card.
Total Credit Card Debt is: $890 billion.
They’re not just racking up higher balances on their credit cards as sky-high inflation and rising interest rates hit household wallets, though. A study released Tuesday by the Federal Reserve Bank of New York’s Center for Microeconomic Data shows a 13% cumulative year-over-year increase in credit card balances. That’s the largest jump in 20 years, since 2002.
Credit card debt stands at $890 billion as of the end of the second quarter, according to the quarterly report on household debt and credit. While credit card balances typically rise during the second quarter, the $46 billion increase makes the second quarter one of the highest jumps on record since 1999. The last time total credit card balances were this high was the first quarter of 2020 reported by Fortune.
Many debtors hold several Visa and Mastercard credit cards. Now it is so easy to apply for a credit card. You can apply online for credit cards.
How many credit cards do you have in your wallet? How much is your balance on each of your credit cards?
It is just natural that handing over a credit card rather than cash is easier. When you charge on a credit card, it is not as noticeable as handing cash to pay. Even the cost of the item or services you are purchasing is less noticeable.
However, the sting comes later when you receive the bills. With interest rates are high on credit cards. When you apply for credit cards, most individuals do not even look at the interest rates. You will not be surprised that over time, your balances keep growing and growing. Those interest rates can amount to much more than you thought.
Paying off just the minimum balances on your credit cards creates major financial difficulties.
Get rid of your debts – Get Debt Free Fast: You may qualify you for Chapter 7 and pay nothing back to your creditors.
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