Consumers Making Adjustments to Credit Card Habits; Savings Barely Able to Cover Balances for Some Groups

Consumers with issues paying their bills every month are carrying balances on their credit cards equal to 157% of their savings — meaning even if they used their savings to pay down all of their credit card bills, they would still not be able to pay them off in full — yet another sign of economic distress for consumers trying to make ends meet, according to the results of a recently released survey.

The more stable a consumer is with respect to being able to cover his or her monthly bills, the lower amount of debt that he or she is carrying. For example, individuals who are living paycheck to paycheck, but still have no issues paying their bills, are carrying credit card balances equal to 62% of their savings, and those with no issues paying any debts are carrying balances equal to 35% of their savings, according to the report.

One interesting piece of data from the survey — the number of consumers who expect their financial situation to get worse in the year ahead has decreased, with more people saying they are actually optimistic about their financial futures in 2023.

In the meantime, 70% of consumers have made adjustments to their credit card habits, such as budgeting more, spending less, or using their card less often, and 67% of consumers have made compromises, such as cutting down on everyday pleasures, pulling money from savings or investments, and sacrificing aspects of their personal lives.

Consumers at all income levels did report it was harder to live within their means and put aside savings.

Check Also

Money Issues Having Negative Impact on Consumers’ Mental Health

Financial issues are the most common factor negatively impacting the mental health of consumers in …

Leave a Reply

Your email address will not be published. Required fields are marked *