Credit card debt prevents nearly 20% of Americans from becoming homeowners

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As Americans deal with soaring inflation and a turbulent housing market, growing credit card debt is a major barrier to home ownership.

Credit card debt prevented one in five or about 18% of those with credit card debt from buying a home in 2022, according to a recent credit card review. Debt study by real estate data firm Clever.

In fact, 46% of Americans say credit card debt has hindered their efforts to buy a home more or less, according to a recent survey by Rocket Homes. Another 36% said it had slightly or moderately hindered their efforts.

Credit card debt used to be a greater threat to homeowners than Student loans and medical debt, as indicated by the Rocket Homes survey.

Credit card debt continues to pile up for many consumers. Credit card balances increased by $38 billion in the second quarter, marking a 15% year-over-year increase and the biggest rise in more than 20 years, according to A report from the Federal Reserve Bank of New York.

If high-interest credit card debt is getting in the way of buying a home, consider paying it off with a personal loan at a lower interest rate, which could save you money each month. You can visit Credible to compare loans from several lenders at oncewithout affecting your credit score.

Personal loan interest rates are in a near record gap with credit cards, which boosts savings opportunities

Americans are racking up credit card debt amid rising inflation

Credit card balances that carry over from month to month are held by 41% of adults over 30, according to Economic Survey by AARP. Participants also said that everyday expenses were the main cause of credit card debt.

According to a separate source, the average credit card debt was $7,100 Debt Survey by AARP.

“Consumers of all ages are feeling the impact of inflation,” Gary Koenig, vice president of financial security at the association, said in a statement. “Many of those living on fixed incomes have had to cut back on essentials, while others have fallen into debt or delayed their retirement plans altogether. Not only does rising prices affect consumer spending, but it makes managing debt and saving for the future a steeper hill to climb.”

If you have high-interest credit card debt, you can consider consolidating it into a personal loan with a lower interest rate, which will save you money each month. You can visit Credible to speak to a personal loan expert and see if this option is right for you.

Credit card balances hit record high amid inflation: transmission

Credit card debt may hinder consumer spending

In addition to home ownership, credit card debt also affects many consumers’ shopping plans.

Many shoppers (70%) say they took inflation into account this past holiday season, and 51% say they would buy fewer things because of inflation, according to Survey by RetailMeNot. The survey also found that 27% of consumers planned to cut back on gift-giving and 24% were distancing purchases over the next several months.

Plus, shoppers have trimmed their holiday budgets. RetailMeNot found that consumers planned to spend an average of $725, 8% less than they did the previous year.

“Past holiday seasons have been a wild ride for retailers and shoppers alike,” RetailMeNot wrote in its survey. “The pandemic, supply chain issues, staffing challenges, and shipping delays have fundamentally changed the holiday shopping landscape, resulting in unprecedented shopping season after unprecedented shopping season.”

Inflation continues to drive up costs, and economic uncertainty throws shoppers and retailers alike into a vicious circle, according to the report.

If holiday debt is a burden in the new year, you can consider paying it off with a personal loan at a lower rate. You can visit Credible to get your personalized rate in minutes.

Holiday shopping is expected to be worth more than $1 trillion in inflation surgeries

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