{"id":9901,"date":"2023-08-07T20:25:02","date_gmt":"2023-08-07T20:25:02","guid":{"rendered":"https:\/\/isafespend.com\/credit-cards\/some-consumers-max-out-credit-cards-without-knowing-how-much-they-pay-to-borrow-survey\/"},"modified":"2023-08-07T20:25:06","modified_gmt":"2023-08-07T20:25:06","slug":"some-consumers-max-out-credit-cards-without-knowing-how-much-they-pay-to-borrow-survey","status":"publish","type":"post","link":"https:\/\/isafespend.com\/?p=9901","title":{"rendered":"Some consumers max out credit cards without knowing how much they pay to borrow: Survey"},"content":{"rendered":"
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Inflation and rising prices are why 31% of Americans said they maxed out their credit cards over the past two years, according to a recent survey.<\/p>\n

Skyrocketing costs also pushed 51% of Americans to increase their reliance on credit cards, and why balances have surged in that time period, the\u00a0Debt.com\u00a0survey said. Beyond inflation, 28% said they took on more debt because of a salary reduction.<\/p>\n

Despite the growing dependence on credit cards to make ends meet, 28% don’t know what their annual percentage rate (APR) is, including how it determines the yearly interest rate they will pay to carry a balance on their credit cards, the survey said.<\/p>\n

The Federal Reserve has raised interest rates 10 times in 2022 and 2023 to bring inflation down to a 2% target. The federal funds rate remains in a targeted range of 5% to 5.25%, the highest level in 16 years. Credit cards, for example, have seen\u00a0interest rates soar, and the average credit card interest rate is now roughly 20%.\u00a0Carrying a balance\u00a0can be particularly costly in a high-interest rate environment.\u00a0<\/p>\n

\u00a0“You can’t get out of debt if you don’t understand what’s keeping you there,” Debt.com’s chairman Howard Dvorkin said. “And you certainly can’t get out of debt if you don’t even know the options you have.”<\/p>\n

If you’re having trouble paying off credit card debt, you could consider getting a personal loan at a lower interest rate. Credible can help you compare options from different lenders all in one place without affecting your credit score.<\/p>\n

COST IS THE BIGGEST FACTOR BEHIND WHY A MAJORITY OF AMERICANS DELAY MEDICAL CARE: SURVEY<\/strong><\/p>\n

Credit card debt soars<\/h2>\n

Despite the more expensive cost of using credit cards, Americans’ balances soared to a record high of\u00a0$993 billion as of July 5, 2023.<\/p>\n

Those with personal debt said they spent 30% of their monthly income toward paying it off, and most said they expected to remain in debt for years, according to a recent Northwestern Mutual\u00a0survey.\u00a0<\/p>\n

Despite the growing debt burden, most Americans don’t know what steps to take toward debt relief, according to the Debt.com survey. Fifty-eight percent said they had never explored any solution to help them reduce their credit card debt burden.<\/p>\n

For those that did try to reduce debt, these were the top three options they used:<\/p>\n