Nearly 110 million (59%) of Americans with credit cards are carrying long-term debt amid the coronavirus (Covid-19) pandemic, a survey conducted by CreditCards.com has found.
Many US adults are already reliant on the use of credit card to pay for day-to-day bills and emergencies amid the outbreak.
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CreditCards.com industry expert Ted Rossman suggests that payment relief programs, balance transfer cards and personal loan debt consolidation should be fully explored to save money during the on-going crisis.
Rossman said: “Credit card debtors need to take matters into their own hands.
“Debtors who are facing financial hardships because of the pandemic should talk to their issuer immediately to see what types of relief programs are in place.
“Make paying off your credit cards a priority, especially with recession odds rising.”
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By GlobalDataLong-term credit card debt poll
Of the 110 million credit card holders, 56% – or 61 million have carried the debt for over a year.
25% – or 27 million Americans have carried the debt for at least three years and 15% – or 17 million cardholders are carrying the debts for over five years.
The remaining cannot recall how long they have been in credit card debt.
Rossman warned saying that “given the coronavirus pandemic’s effect on various industries, the good economic times are likely to end soon.
“The coronavirus outbreak is unfortunate proof that circumstances can change in an instant.”
Overall, 35% of credit card debts are related to medical bills (13%), car repairs (12%) or home maintenance (10%).
About 26% of debt cited daily expenses, 18% carry retail purchases and 12% of debt comes from vacations.
Covid-19 crisis and debt implications
The poll has inferred that the coronavirus crisis will likely have debt implications for adults of all ages.
For instance, older people are at high risk of getting sick from the new virus, which may cost them most of their retirement money on medical bills.
When it comes to younger people, many have lost their jobs or gotten sick, which only increases their credit card debts.
Fortunately, many banks in the US are offering several relief measures, deferred payments or fee waivers, and suspending job cuts.
Customers, clients, and employees can also make use of the recently signed trillion-dollar stimulus package to pay down the credit card debts.
