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1 in 3 consumers fear they will max out a credit card

Valued Contributor

Re: 1 in 3 consumers fear they will max out a credit card

So many concenring aspects within this aticle, but a couple of them are:

 

"(average household) coughing up about $1,140 a year in interest" 

Yikes that is scary!

 

"At the same time, credit card interest rates have never been higher, setting the stage for potential problems for those at-risk consumers.

The average card interest rate is currently at a record 17.41 percent"

Not even sure that to say about this.  If 17.41 is the average interest rate, that means a lot of people are paying much higher than that.  In some case, could take decades to pay it off!  I really feel bad for people in this category, as I was right there myself prior to 2012.  

 

 

 

Year 2012: All Scores in the 520 range, during a foreclosure, CC Settlement and high UTIL. Very ugly days...
Feb 2019: EX8: 850; EQ8: 850; TU8: 814 -- Thank you very much to this community!!
In My Wallet: Discover $73.7K; Cap1 Venture $36.7K; Amex ED $38K; Amex Optima $12.5K; Amex Delta Gold $18K; Citi Costco $13.5K; Cap1 Plat $8.4K; Barclay $7K; BoA Plat $21.6K; Citi TY Pref $18K; US Bank $4K; Dell $5K; Care Credit $6.5K. Total Revolving CL: $263K
My UTIL: Less than 1% - Only allow about $10 a month to report, on one account. .
Message 11 of 12
Moderator Emeritus

Re: 1 in 3 consumers fear they will max out a credit card

From the associated nerdwallet article:

 

"**The credit card debt figures in this chart represent revolving credit card balances — those that are carried from month to month — rather than all credit card balances. Total U.S. credit card outstanding debt stands at $944 billion, which includes both revolving and transacting balances"

 

Curious, in references:

 

  • Revolving and transacting bank-card balances, June 2018, via email from Experian.

And that is not linked anywhere.  I'm not going to say the data is wrong, but if I can't see the source color me skeptical: why the push from lenders to distinguish revolved vs. transacted balances if this is already been available for six + months?

 




        
Message 12 of 12