😱 Credit Cards in Times of Inflation: Americans Struggle

😱 Credit Cards in Times of Inflation: Americans Struggle

According to the annual survey by JD Power, 51% of credit card holders in the U.S.are unable to meet their credit payment obligations each month, and only 46% consider themselves financially stable.

➡️ Consumers are facing difficulties as pandemic aid has run out, and the Federal Reserve has raised interest rates. Naturally, this decision has impacted Americans with credit card debt.

➡️ High-interest rates are inevitably applied to the revolving balance of credit cards… Oops.

➡️ Will this lead people to reduce their use of credit cards❓ — Not necessarily. The credit card industry bets on rewards and benefits systems not present in alternative payment methods: points, miles, and cash back.

➡️ Context: In 2023, the annual volume of the U.S. payment processing market surpassed 2 trillion USD. The use of digital wallets accounts for about 25% of the payment market. For corporate users, most companies prefer banks over fintechs for payment-related financial services, such as fraud protection and cash flow forecasting.
#news #USA

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