Credit Card Debt: 2 in 5 U.S. Cardholders Hit Spending Limits
Understanding the Growing Credit Card Debt Crisis
Credit card debt continues to escalate in the U.S., as recent findings indicate that 2 in 5 credit card holders have either maxed out their cards or are nearing their limits. This trend has intensified since the Federal Reserve began to raise interest rates in March 2022. A new survey by Bankrate, conducted with 3,576 U.S. adults, highlights alarming statistics about the state of credit card usage among Americans.
Key Findings of the Survey
- Among respondents, 54% pointed to inflation as the primary reason for reaching their spending limits.
- 38% cited emergency expenses as a significant factor.
- 25% indicated job or income loss affected their credit card usage.
- 22% reported medical costs as a contributing issue.
Since 2022, the cumulative credit card debt has soared, reaching a staggering $1.1 trillion as of the second quarter of 2024, reflecting a $27 billion increase from the previous quarter. This alarming rise stresses the financial burdens many Americans face as rising prices on essential goods compel them to rely heavily on credit.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.