How Bad are Financial Strains in the U.S. in Times of the Pandemic?
So far, no one can say for sure when the coronavirus pandemic will end. To assess the current financial situation of Americans, CreditCards.com has recently conducted two surveys of credit card debt during the COVID-19 outbreak. The surveys were conducted in March and April with over 2,000 U.S. adult respondents. Here are the key findings:
- 23% of credit card debts in the U.S. have increased in the period of the COVID-19 outbreak;
- The number of credit cardholders with debt went up by 5% per month – up to 47%, which is about 120 million debtors;
- Among those whose debts got deeper there are 34% of millennials, 23% Gen Xers and 15% of baby boomers;
- 63% of adult credit cardmembers in the United States are concerned about making their monthly payments on credit cards. The poll says that these worries are close to 71% of women and 54% of men;
- 60% of debtors are going to solve the issue by paying more than the minimum required, while 13% want to apply for a balance transfer credit card, 7% will turn to the issuer for assistance (12% of millennials, 6% of Gen Xers, and 4% of baby boomers), and 6% pin their hopes on personal loans.
- At the same time, 9% are not to pay anything at all and 4% haven’t made up their mind yet.
If the coronavirus impacted on your financial standing and made your debts bigger, now you know that you are not the only one. However, we recommend that you do not aggravate the situation. You definitely shouldn’t be among those 9% who just let it go by itself.
In case the situation seems hopeless to you, remember that many banks now offer assistance to their customers affected by COVID-19. In most cases, you simply need to contact your credit account issuer and ask for help. You may be offered extension on monthly payments, relief from late payment fees, or some other individual terms.
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