Credit card debt is rising, with 40% of credit card owners carrying a higher balance compared to this time last year.
A survey by financial advisory D.A. Davidson revealed 54% of credit card holders do not typically pay their credit card balances off in full every month.
Andrew Crowell, vice chairman of wealth management at D.A. Davidson, said: “As credit card balances grow during this period of sustained inflation, many Americans are understandably worried about their financial picture, especially as we approach a period of increased spending.”
Overall, half of all Americans who both have a credit card and plan to celebrate the holidays expect to be able to pay their credit card balances off in full during the holiday months, but there were generational and gender differences.
The survey found 37% of men and 23% of women expect to spend more on gifts for family and friends this year than they did last year.
However, 59% of men were confident in their ability to pay off their credit card balances in full during the holiday months, compared to 48% of women.
It also found 64% of Gen Z expect to pay off their balances in full, compared to 56% of Baby Boomers, 50% of Millennials and 47% of Gen X.
Gen Z was also the generation most likely to plan to have a conversation with their partner to discuss holiday spending.
The survey follows recent research from Santander US which found over 77% of consumers believe they can become financially prosperous within the next decade, despite mounting macroeconomic pressures.
- Third-Party Risk Management “Essential” As More Banks Partner with FinTechs
- M&A: First Western Announces Purchase of State Bank of Lismore
- Majority of Americans Reliant on Credit Card Rewards During Holidays
- Congress Votes to Scrap CFPB Small Business Lending Data Rule
- FDIC “Missed Opportunities” in First Republic Bank Supervision