Credit Card Basic Information
This percentage of people own credit cards in the United States
82%
This is the number one reason why credit cards are used significantly nowadays
Convenience
This occurs when you do not pay off your balance on time
Interest grows
Educating consumers about how to manage debt and budget their money well is known as this
Financial literacy
This percent of Americans carry a balance month to month
Half of Americans (50%)
When consumers buy on credit, this type of money is used
Borrowed money
When prices rise, people use credit cards to combat this financial change in the economy
Inflation
High interest rates make this action more difficult for consumers
Paying off their debt
Clearer timelines to pay, transparency about long‑term interest costs, and more intense requirements could reduce this
Credit card debt
If your debt is not paid back in a timely manner, this can happen to your credit score
Your credit score can drop significantly
When borrowing money, banks/financial institutions expect consumers to do this within a month
Pay off their balance on their credit card(s)
Some individuals believe credit card companies/financial institutions encourage people to do this behavior
Overspend
This was the average credit card interest rate in 2024
24.84%
These organizations offer lower-interest borrowing options for consumers
Credit unions
These necessary expenses were purchased with credit cards by 60% of people in 2023
United States credit card debt has exceeded this amount
1 trillion dollars
Unfortunately, people accumulate significant credit card debt and do not know how to manage their debt because they lack this important life skill
Financial literacy
Carrying a balance month to month on credit cards can inflict these expensive charges
Interest payments
This type of method is when you pay off the highest interest rate credit card you have first
Avalanche method
Features like Apple pay where you can use credit easier than ever are known as
Digital wallets
Financial safety/less fraudulent charges
Credit cards can increase the likelihood of spending as it reduces psychological "pain of paying" in comparison to if you paid with this other form of payment
Cash
This is a barrier that may be present if someone's debt continues to grow
Limited access to get more credit
This other type of method to manage your credit card debt is when you pay off your smallest credit card debts first
Snowball method
This number of credit card users have been in credit card debt for at least a year
56 million