Rising interest rates and credit card balances from CNBC.
via CNBC:
- Over 1 in 3 people —or 86 million Americans — say they’re afraid they’ll max out their credit card when making a large purchase.
- Still, most Americans continue to take on ever-increasing amounts of credit card debt.
Despite the dangers of high-interest loans, more consumers are testing the limits of plastic.
To that point, more than 1 in 3 people —or 86 million Americans — said they’re afraid they’ll max out their credit card when making a large purchase, according to a new WalletHub credit cards survey. (Most of those polled considered a large purchase as anything over $100.)
“Maxing out your card essentially means you are over-utilizing your credit,” said Jill Gonzalez, an analyst at WalletHub.
“You are not going to be able to pay that off in a timely fashion,” she added, resulting in higher interest payments and damaging your credit score in the long run.
Still, most Americans continue to take on ever-increasing amounts of debt. According to data from the Federal Reserve, the U.S. surpassed $1 trillion in credit card debt — the highest level since the Great Recession.