Almost 40 million Americans are likely to miss their credit card payments this 2019, according to a recent study of Wallethub. Exactly 16 per cent of the respondents answered that they are likely to miss monthly dues at least once this year.
According to a survey, there are a total of 183M Americans who are using credit cards. This number continues to grow each year, with more adults joining the workforce. While on average, American households have credit card debt of more than $8,200. If penalties and interest were to pile up each month, every cardholder can greatly suffer.
There are also penalties for new purchases, depending on the issuer. Plus, APR is not stable and is actually increasing, therefore, more cardholders can carry a significant balance on their accounts.
Despite the thriving economy of America, almost half of the American population actually holds more debt than savings. This is especially true for those who still have car loans to settle. In fact, according to the Washington Post, a total of 7 million Americans are three months behind their car payments. Experts claim that this is a red flag for the economy and people need to save more money, especially those in the lower-income bracket.
The Washington Post reports, “Most of the people who are behind on their bills have low credit scores and are under age 30, suggesting young people are having a difficult time paying for their cars and their student loans at the same time.”