Debt Causing Nearly Two in Three Americans Carrying Credit Card Debt to Delay or Avoid Other Financial Decisions, Study Finds

According to a new Bankrate report, 64% of U.S. adults carrying credit card debt have delayed or avoided other financial decisions as a result of the debt. 34 percent of credit card debtors have delayed creating an emergency savings fund, 26 percent have delayed spending on healthcare and/or wellness, 23 percent have delayed investing, 21 percent have delayed vehicle purchases, 19 percent have delayed helping family or friends, 17 percent have delayed donating to charity, and 13 percent have delayed purchasing a home.

“Americans are dealing with a record amount of credit card debt – $1.2 trillion, according to the New York Fed – and the average credit card rate is around 20%, according to our Bankrate Data,” said Bankrate Senior Industry Analyst Ted Rossman. “That hasn’t fallen much from a record set last summer. For millions of American households, credit card debt represents their highest-cost debt by a wide margin.”

The most likely groups to have delayed financial decisions due to credit card debt are Millennials (75 percent) and Gen Z (72 percent).

“This is why it’s so important to pay off your credit card debt as quickly and cost-effectively as possible,” Rossman said.

The survey was conducted by YouGov using an online interview administered to members of a panel who have agreed to take part in surveys. The total sample size was 2,417 U.S. adults, with 822 carrying a credit card balance month over month.