SALT LAKE CITY, Utah–More than half of Americans (62%) say their credit card debt has increased since the beginning of the pandemic, with 52% saying they’ve increased their credit limits to support their growing spending habits, according to a new survey by Business.org.
“Debt is on the rise, but despite individual financial situations becoming more precarious, spending as a whole doesn’t seem to be slowing down,” the organization said in releasing the findings. “In fact, there are many industries whose overall sales have increased since the start of the pandemic.”
The sales increases since the beginning of the pandemic include:
- Sporting goods, hobby, musical instruments, and bookstores (39%)
- Building materials and garden equipment (38.8%)
- Electronics and appliance stores (35.2%)
- Automotive parts, accessories, and tire stores (27.9%)
- Furniture and home furnishings stores (22.6%)
Some Spending Declines
But there have been some decreases in spending in areas to be expected, including:
- Amusement, gambling, and recreation industries (-14.3%)
- Food services and drinking establishments (-18.1%)
- Accommodations (-27.6%)
“These spending-habit shifts in addition to growing credit card debt led us to wonder why exactly individuals are choosing to use credit cards,” Business.org said.
What stresses Americans about credit cards?
“Credit cards are obviously not a magical fountain of money—they come with strict terms. Due to increased demand for credit cards, there’s every reason for credit card companies to offer less-Forgiving terms,” the organization noted. “Credit card users are experiencing suboptimal terms, with 64% being stressed about high interest rates and 47% worrying about annual fees. Additionally, 41% of credit card users are also worried about increasing debt and 25% are concerned over making monthly payments.”