Credit card use surges in US as consumers struggle to pay for food and utilities

Video above: Top Credit Card Mistakes to Avoid When Times Are ToughLast year, credit card debt jumped $100 billion – a 13% increase – the biggest in over 20 years old. Experts say any relief for consumers could take months. Credit card use is on the rise as household debt tops $16 trillion for the first time in the second quarter. “It’s because many consumers are stressed and in a rush to pay for the necessities of food, fuel,” said Marshall Rowe, chief innovation officer for Colony Group. Inflation cuts into the wallets of many Americans. Findings from a Lending Club report show nearly two-thirds of the US population live paycheck to paycheck, sending debt data skyrocketing. Video above: Fed interest rate hike will make credit card debt more expensive “In my opinion, credit card debt is probably the worst kind of debt you can have. It is unsecured debt. Credit card companies have nothing to back this debt,” said Sean Tole, a financial adviser. A recent study by the National Bureau of Economic Research reveals that between 9 and 20% of credit card customers choose to pay the minimum amount even they can afford to pay more. Experts say that making do with this minimum every month isn’t enough. “It’s almost impossible to pay it back almost ever,” Tole said. “You’re going to be paying that minimum payment for a really long time and you really have to start paying more than that minimum amount because you’re really going to be spending a lot of money on those long-term finance charges.” Experts say consumers with debt unpaid credit card debt will likely start to see the impact of rising interest rates soon, and they don’t expect it to let up even as the holiday season approaches.

Video above: Top credit card mistakes to avoid when times are tough

Over the past year, credit card debt has jumped by $100 billion – a 13% increase – the largest in more than 20 years.

Experts say any relief for consumers could take months.

Credit card use is on the rise as household debt tops $16 trillion for the first time in the second quarter.

“It’s because many consumers are stressed and in a rush to pay for the necessities of food, fuel,” said Marshall Rowe, chief innovation officer for Colony Group.

Inflation cuts into the wallets of many Americans.

Findings from a Lending Club report show nearly two-thirds of the US population live paycheck to paycheck, sending debt data skyrocketing.

Video above: Fed interest rate hike will make credit card debt more expensive

“In my opinion, credit card debt is probably the worst kind of debt you can have. It is unsecured debt. Credit card companies have nothing to back this debt,” said Sean Tole, a financial adviser.

A recent study by the National Bureau of Economic Research reveals that between 9 and 20% of credit card customers choose to pay the minimum amount even though they can afford to pay more.

Experts say that making do with this minimum every month isn’t enough.

“It’s almost impossible to pay it back almost ever,” Tole said. “You’re going to be paying that minimum payment for a really long time and you really have to start paying more than that minimum amount because you’re really going to be spending a lot of money on those long-term finance charges.”

Experts say consumers with unpaid credit card debt will likely start to see the impact of rising interest rates soon, and they don’t expect it to let up even as it nears. of the holiday season.