Tens of millions of Americans say they expect to miss at least one credit card due date this year. That’s according to a new survey by WalletHub. Analysts say the missed payment deadlines indicate cracks in the foundation of consumers’ finances are beginning to show.
“Americans are known for being big spenders and unfortunately we’re getting a little too big with that spending,” according to Jill Gonzalez, an analyst with WalletHub. “About 40 million Americans say that they’ll miss at least one credit card due this year.”
Gonzalez says the average American household already owes a near-record $8,200 to credit card companies. She says that balance is made more expensive due to recent Federal Reserve rate hikes.
“Missing a credit card payment in particular, rather than a utility bill or some other type of bill is very dangerous because its negative effects can usually hit you overnight, especially when it comes to your credit score itself.”
She adds that many consumers aren’t aware of how challenging overcoming missed payments can be.
“It’s really hard to come back from even one missed payment, so that’s obviously a big deal for people and unfortunately a lot of people don’t even realize that.”
Gonzalez says there is some good news for consumers.
“The good thing here is that most of the time credit card issuers are forgiving if you ask nicely, about nine in 10 people who have tried to get a credit card late fee waived were successful, so that’s obviously a very good rate.”
For more information or to view a copy of the full report visit: https://wallethub.com/credit-cards#survey.
