A record number of people say they would need to pay for an unplanned $1,000 expense by using their credit card, according to a new survey showing the burden of high prices even as inflation rates ebb from four-decade highs.
That’s the biggest percentage of people saying they would need to finance the un-budgeted $1,000 expense through credit cards since Bankrate began asking about topic in 2014. The number is up from 20% one year earlier and up from 16% in January 2020, the survey noted. It’s no surprise the current economic climate is the culprit behind saving less. Around two-thirds said inflation and increasing costs were the reason they were saving less, the poll said.
After a parade of increases last year to a benchmark interest rate, the Federal Reserve is widely expected to add another next week. The central bank could increase the federal funds rate by another 25 basis points. Another average tells the same story. LendingTree said the APR on new card offers was 23.39% in January, up from 22.91% in December. LendingTree researchers said that’s the steepest average rate since they started tracking it in 2019.
While interest rates climb, so are aggregate credit-card balances. During 2022’s third quarter, American credit-card debt increased by $38 billion to $930 billion, according to the Federal Reserve Bank of New York. That’s a 15% increase year over year and the sharpest climb in more than 20 years, researchers said.
The Fed isn't the answer...
Loans Loans Latest News, Loans Loans Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: FoxBusiness - 🏆 458. / 53 Read more »