67 Million Americans May Have Trouble Paying Credit Card Bills
Even before the spread of corona virus (aka COVID-19) brought the U.S. economy to a near standstill, Americans were taking on increasing amounts of debt. Now, around 67 million Americans said they will have trouble paying their credit card bills due to the outbreak and its aftermath, according to a new Coronavirus Money Survey by personal finance site WalletHub. “Their struggles could easily ripple through the economy if left unaddressed, especially considering the more than $1 trillion in credit card debt currently owed by U.S. consumers,” said Odysseas Papadimitriou, CEO of WalletHub. According to data from the Federal Reserve, the U.S. has surpassed $1 trillion in credit card debt — the highest level since the Great Recession. However, credit cards are one of the most expensive ways to borrow money. Considering U.S. households with revolving credit card debt owe nearly $7,000, on average, and credit card interest rates are near record highs — at more than 17% — they are also coughing up roughly $1,100 a year in interest payments, according to NerdWallet’s 2019 household debt study.
[as reported in Credit & Collection e-newsletter of 3/19/20]