Yet, those higher rates mean higher interest on credit cards as the new data shows that American families are using their plastic just to pay the bills.
Danny Kofke, author, and motivational mentor with Mentoro says the numbers indicate so many people need financial wellness. “I think it says we like to spend money,” he said.
Kofke believes that the higher prices are forcing Americans to borrow more money. The problem is that using credit cards only puts consumers deeper in the hole. Per his example: someone who racks up $5,000 on a credit card could pay 1.25% of the balance, with an 18% interest rate.
“By the time you’re done paying off that $5,000 debt, it will cost you over $12,000 and take you over 22 years, not months, to pay it off,” said Kofke.
