Credit card balances are way up as Americans are falling deeper into debt. A new report from Bankrate says the share of credit card owners who carry a balance month to month has jumped from 39% to 46%.
Rising prices have forced many to turn to credit cards to cover everyday expenses. More than a third of U.S. adults (35%) are caring debt month to month. That’s up from 29% in 2022.
“It just seems like everything costs more and a lot of those necessities are landed on credit cards,” Ted Rossman, with Bankrate, said. “Which is problematic if you’re financing it over the long-term with an average interest rate approaching 20%.”
He adds that 43% of those with debt don't even know their credit card's interest rate.
“We started last year at 16.3% on average,” Rossman explained. “We finished at 19.6% which was a record. We’ve since gone a little higher.”
He says the new year is a great time to review your finances.