A whopping 37% of credit card holders have hit or are close to hitting their credit card limit since inflation hit the country under Biden-Harris administration policies, a Bankrate/YouGov poll found Thursday. It became.
Rising costs led to a significant increase in credit card debt, which spiked by an average of about 20% overall.
“Inflation doesn't matter whether you're rich or poor; everyone can feel its wrath,” said Bankrate analyst Sarah Foster. said. “With limited options to absorb these high costs, many low-income Americans are turning to debt to buy expensive necessities while credit card interest rates are near record highs. There is no other choice.”
bank rate reported The study's historical findings point out that credit card debt harms “groups,” especially those that are “vulnerable” to inflation.
Nearly two in five cardholders (37%) have maxed out or are close to maxing out their credit card limit since the Fed began raising interest rates, according to Bankrate's credit utilization survey. It turned out that. This includes 20% who have maxed out their credit card limit and 17% who are nearing their limit.
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Despite credit card debt reaching a new record of $1.14 trillion in the second quarter of 2024, aggregate usage rates at the national level remained stable, according to the New York Fed's Household Debt and Credit Report. It seems there is. According to Equifax data, the average credit card utilization rate in August was 21.3%, in line with the historical norm of 20-22% since 2011 and above the 30% rule of thumb typically recommended by experts. %.
However, Bankrate's findings provide a more detailed look and show that some groups, particularly those vulnerable to inflation, have access to more credit than others, making it easier for some deprived groups to It has become clear that there is a possibility that a Equifax data also shows that usage rates have jumped from March 2022 (18.6%). Meanwhile, back in April 2021, average utilization reached its lowest level ever (18%).
The survey was conducted between September 11th and 13th among 3,576 US adults.
lending tree reported Regarding the increase in credit card debt consistent with policies under the Biden-Harris administration:
Americans have a huge amount of credit card debt – $1.142 trillion to be exact.
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Credit card balances increased $372 billion from Q1 2021. Americans have $215 billion more in credit card debt than the record set in the fourth quarter of 2019, when balances were $927 billion. But thanks to record interest rates, stubborn inflation, and a myriad of other economic factors, your credit card balance will likely only increase.
Wendell Husebo is a political reporter for Breitbart News and a former RNC war room analyst. he is the author of politics of slave morality. Follow Wendell “×” @WendellHusebø or society of truth @WendellHusebo.
