If you have credit card debt and would like to know where you stand compared to your fellow Americans than read on to find out. GOBankingRates, a personal finance news website, recently conducted a survey on debt in America and revealed some startling statistics. The survey found 30% of Americans have credit card debt between $1,001 and $5,000. Another 15% have $5,001 or more in credit card debt and approximately 6% have debt of more than $10,000. All this adds up to 14 million Americans having over $10,000 of credit card debt.
Just how long do most Americans think it will take to pay off that debt. Well, twenty five percent of people surveyed think it will take 2 years or more to pay off their credit card debt.
While fifty nine percent believe they will be able to pay off their credit card debt within six months, thirteen percent believe it will take at least a couple of years, and eight percent think it will take five years. Lastly, two percent feel hopeless and never think they will ever be able to pay it off.
For perspective, fifteen percent of Americans have been in credit card debt for 15 years or more
Another survey conducted by Inside 1031 found that fifty five percent of people carry a balance from every month and forty percent have been carrying credit card debt for more than 3 years. Fifteen percent have had credit card debt for over 15 years.
Forty nine percent of Americans Use Credit Cards to Pay for Essential Living Expenses
The Inside 1031 survey also found that forty nine percent of Americans depend on credit cards to help pay for necessities. This is most common among generation Z and millennials who often depend on credit cards to pay for living expenses. This is a stark contrast to the twenty six percent of boomers using credit cards to cover essential expenses. Of course, most boomers have had time to accumulate financial resources compared to someone just starting out.
Forty five percent of Americans Have Taken on More Credit Card Debt During the Pandemic
Since the pandemic began, forty five percent of Americans have added to their credit card debt, the survey found and those who carry a balance from month to month are two times as likely to report having more debt now than before the pandemic.
Most Americans have missed at least one credit card payment
The survey also found fifty seven percent of Americans have missed at least one payment citing the most common reason as simply forgetting, but the next most common reason was paying for essential such as food and groceries.
Forty three percent of Americans rely on their credit card for a $2,000 emergency
Thirteen percent of Americans have no emergency savings and thirty seven percent currently have less than $1,000 in emergency savings, so it’s not super surprising that nearly half of Americans said they would rely on a credit card to cover a $2,000 emergency.
If credit card debt or any unsecured debt such as payday and installment loans, medical and phone bills, have become a problem and you would like to speak to someone about a program that may be able to help you, please schedule a free consult with one of the account managers at Progressive Debt Relief. To schedule please call 877.590.1847 or use the online contact form.
*Progressive Debt Relief does not provide legal, financial or tax advice and the above should not be construed as such.
