One third of Americans with credit card debt report others don’t know how much they owe, according to a NerdWallet report.
06/29/2023 12:45 P.M.
2 minute read
Americans continue to be burdened by credit card debt, with a national balance of around $1 trillion and interest rates exceeding 20%, and many individuals feel embarrassed about their credit card debt and are reluctant to disclose it, according to an article in The Hill.
The article cites a survey by NerdWallet, which reveals that two in five Americans consider credit card debt embarrassing, and a significant portion of married individuals with debt haven’t informed their spouse about it.
Furthermore, some respondents indicated it would be acceptable to have a credit card their partner is unaware of. Unlike mortgage refinancing with low-interest rates, obtaining a new credit card in 2023 comes with an average interest rate of 24%, according to LendingTree.
Multiple reports indicate that Americans are increasingly sinking into credit card debt due to various factors such as unexpected expenses, medical emergencies and job loss, according to The Hill
The NerdWallet report, based on a survey conducted by The Harris Poll, focused on financial secrecy among adults in light of mounting consumer debt and dwindling savings. The survey found that over 40% of partnered Americans have kept financial information hidden or lied about it to their significant other, including expensive purchases, income levels, credit scores and credit card debt.
Younger Americans, particularly Generation Z and Millennials, are more prone to concealing financial details from their partners compared to Generation X and baby boomers, according to the report.
Overall, credit card debt is on the rise.
A WalletHub survey showed that a majority of Americans had more credit card debt than the previous year, with almost half stating that it caused them stress, and a significant portion attributing the debt to frivolous spending. Another survey by Bankrate found that 35% of adults carry credit card debt from month to month, and many of them are unaware of the interest rates they are paying, despite the rates being at an all-time high.
To address these issues, the NerdWallet report suggests opening up to someone about financial concerns, even if it’s not a partner. Sharing these concerns can provide relief and potentially lead to assistance in overcoming debt.
“If you are able to come forward and share it with someone, then you will have less pressure,” said Melissa Lambarena, a credit card expert at NerdWallet.
Seeking professional help, such as contacting the nonprofit National Foundation for Credit Counseling, is also recommended for those who don’t feel comfortable sharing finances with a partner or parent.
Additionally, personal finance experts suggest strategies like utilizing zero-interest credit cards and directly appealing to credit card companies to alleviate credit card debt.
Read the full report from NerdWallet here.
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