As expenses stay high, more Americans are relying on credit cards: 46% of cardholders now carry debt from month to month.

As inflation continues to drive up the cost of living, more and more Americans are turning to credit cards to help make ends meet. With household expenses eating up a larger chunk of income, many people are finding it difficult to keep up with their bills without using some form of credit. While it may not be the ideal solution, for many people, using a credit card is the only way to keep up with their financial obligations.
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The personal savings rate in the United States is near an all-time low, and credit card balances have jumped 15% year over year, according to the latest quarterly report from the Federal Reserve Bank of New York. This is the largest increase in credit card balances in more than 20 years.
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The Fed researchers wrote in a blog post that with prices more than 8% higher than they were a year ago, it is perhaps unsurprising that balances are increasing.
The true test will be to see if these borrowers can continue making payments on their credit cards. Only time will tell if they will be able to keep up with their payments.
A recent study has shown that fewer Americans are paying off their credit cards in full. This is likely due to the increasing cost of living and the difficulty of making ends meet. If you are one of the many Americans struggling to pay off your credit card debt, there are a few things you can do to make the process easier. First, try to make more than the minimum payment each month. This will help you pay off your debt more quickly. Second, try to avoid using your credit card for unnecessary purchases. If you can stick to these two tips, you should be able to pay off your credit card debt in no time.
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According to Personal Finance, the best way to pay down high-interest debt is to 63% of Americans are living paycheck to paycheck. This is causing credit scores to level off.
According to a new report by Bankrate.com, nearly half of credit cardholders (46%) carry debt from month to month on at least one card. This is up from 39% last year.
Ted Rossman, senior industry analyst at Bankrate, said that people are hanging in there for now, but some of the cracks are starting to show.
Carrying a balance on your credit card can lower your credit score, and high annual percentage rates make credit cards one of the most expensive ways to borrow money.
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The average credit card interest rate has reached a new high of 19.6%, after rising at a faster pace than ever before. This is in line with the Federal Reserve's interest rate increases, which are designed to help control inflation.
According to Rossman, credit card rates will rise to over 20% by the end of the year, in line with the Federal Reserve's commitment to keep raising its benchmark until more progress is made.
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According to Bankrate, those who carry a balance on their credit cards tend to have higher interest rates. However, 43% of people who carry a balance don't even know the interest rate they're being charged.
If you made minimum payments toward the average credit card balance, it would take you almost 17 years to pay off the debt and cost you more than $7,528 in interest, according to Bankrate.
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"The math is pretty staggering," Rossman said. "I can't believe how much money we've raised."
According to the financial expert, the first thing you should do if you're trying to pay off debt is to acknowledge what you owe and the interest rate. Then, you can start to pay down the debt with a 0% balance transfer card. This can help you save money on interest and get the debt paid off more quickly.
According to Matt Schulz, LendingTree's chief credit analyst, a 0% balance transfer card is "the best weapon you can have against credit card debt."
Schulz warned that if steps aren't taken to reduce debt, it will only become more expensive.
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Cards with long 0% intro APR periods on balance transfers are still widely available, according to our research. You can find offers for up to 21 months with no interest, which can help you save a lot of money on interest charges if you transfer a high-interest balance.
According to Schulz, making the best use of a balance transfer comes down to making payments on time and aggressively paying down the balance during the introductory period.
If you don't pay the balance off, the remaining balance will have a higher APR applied to it. The average APR for new credit is about 23%.