Nearly 40% of Americans paid a late fee in past 12 months: Survey
(NewsNation) — Consumers are struggling to pay their bills on time and many are leaning on credit to make ends meet.
A new
Late fees on credit cards were the most common, with 21% of respondents incurring at least one penalty over the past year, followed by utility bills (10%) and rent (8%).
The survey's findings underscore what other recent reports have shown: more people are falling behind on their credit card debt.
During the first quarter, the share of credit card debt that was more than 90 days overdue rose to 10.7%, a 14-year high, according to the
Nowadays, many consumers are relying on credit to cover basic necessities at the supermarket, where prices are up 25% since the pandemic.
Of those surveyed by
The survey found more than one-quarter (27%) of Americans generally carry a balance on at least one credit card from month to month. That's happening even as the average interest rate on a given credit card surges to roughly 21.5%, the highest level since 1994.
Buy now, pay later services have also become a popular credit option, with 25% of Americans using them in the past year.
"Because buy now, pay later services don't require a credit check, the barrier to entry is low,"
Younger Americans were especially likely to utilize buy now, pay later, with 40% of Gen Z respondents (ages 18-27) and 36% of millennials (ages 28-43) using those services in the past year. Over 10% of those surveyed in each of those groups said they used buy now, pay later to cover necessities.
Despite the signs of financial hardship, 30% of Americans are feeling better about their ability to qualify for credit now compared to a year ago,
The
Krugman: Irrational fear of inflation shouldn't drive Fed choices
PSE: Planned power outages could be used to prevent wildfires
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News