Credit Card Debt Statistics

Posted on

It is not a secret that the usage of credit card always increases day by day. Some people might not be affected, but it also affects many people. To those who use their credit card a lot, of course this is an important matter. Not surprisingly, the credit card debt statistics show that the usage of credit cards has increased in the last three years.

Causes to the Increase in Credit Card Debt Statistics

  1. Promotions

An observer claims that the increase in credit card usage is significant. This is caused by the existence of travel fairs held by multiple travel agents. They often offer promotions of travel packages that make people have the urge to travel. Most people pay for these packages using their credit cards. No wonder that this contributes to the increase of credit card debt statistics.

Apart from the promotions that tempt people to spend more money than they actually need, the travel journals made by travel bloggers that are published online and can be read by anyone also affects people. Combining the promotions and the experiences offered, people will not hesitate to pay for a holiday travel package using their credit card. This deadly duo will definitely result in an increase in credit card debt statistics.

  1. Holiday Season
Read :  Where is the Security Code on a Credit Card

Holiday season also affects the usage of credit cards. During Christmas season or any other public holidays, credit card debt statistics also show an increase. Most of the spending people make in these seasons are due to the need to buy decorations, souvenirs, etc.

The holiday season contributes to the increase in credit card debt because most stores offer discounts or packages of goods. Many people do not realize that buying discounted goods is no different than paying for its full price, because usually the prices go up before they are discounted. People also often forget to count how much they have spent during shopping. All they know is the total spending that month exceeds their ability to pay.

  1. E-Business

E-commerce business owners claim that more people are starting to use their credit cards for online transactions. It is possibly caused by the convenience and efficiency of credit card transactions. Of course, this is a good thing, but it also contributes to the increase of credit card debt statistics.

Read :  Wells Fargo VA Mortgage Rates

The increase in credit card usage is the ease of getting a credit card. Credit cards can be obtained in very few simple steps. All banks have offered ease to future credit card holders by assisting them through the process of issuing a credit card. More credit card holders mean more increase in credit card debt statistics.

The promotions that most online stores offer when people pay using credit card also contributes to the fast growth of credit card debt statistics. For example, most stores offer installments with zero percent interest when customers pay with credit card. Of course, this sound interesting, but only a few people that the total amount of expense still counts in their credit card debt.