HONOLULU (KHON2) — Living in Hawaiʻi, we understand that credit is king. And most of us grow that rating through our credit card debt.
Credit cards are helpful in offering rewards, and some offer no interest for a certain time.
But credit cards can be a slippery slope that fills the gap between actual earned income and the cost of living. So, as our economy continues to crash and more and more people find themselves without work, how can we control our need for credit cards?
A new survey sought to understand how people are dealing with credit card debt and what worries them about it.
Here are some key takeaways from the survey:
1. Debt is expected to increase
- 25% of people think they will have more credit card debt by the end of 2025.
- 47% are concerned that tariffs (taxes on imported goods) will make their debt worse.
2. Many lack a clear repayment plan
- Nearly half of Americans (46%) don’t have a plan to pay off their credit card debt.
- Only 54% indicated they have a plan. This means a lot of people are unsure how to manage their debt.
3. Inflation worries more than tariffs
- The biggest worry for most people is inflation (the rise in prices). 62% of Americans are most worried about inflation. This may be because the vast majority of residents do not understand what tariffs are and how they function.
- Only 22% are concerned about tariffs, and 16% worry about their credit card debt.
4. People don’t trust AI for debt advice
- Almost 80% of people don’t trust artificial intelligence (AI) to help manage their credit card debt.
- This shows people prefer human advice or other resources instead of relying on machines.
5. Support for lower credit card interest rates
- 83% of Americans think the government should set limits on how high credit card interest rates can go.
- The average credit card interest rate is about 23%, which is very high and hard for many people to pay off.
6. Most debt comes from necessary expenses
- 64% of debt comes from things people need, like food, bills or housing.
- The rest, 36%, comes from things people want but don’t necessarily need, like shopping for fun.
7. People think the country’s debt is worse than their own
- Nearly 80% of Americans believe the country’s debt is in worse shape than their personal debt.
- This may be because people do not understand the difference between government debt and corporate debt.
8. Which budgeting apps are trusted most
- The most trusted budgeting app is Rocket Money with 37% of people saying it’s the best.
- Other apps like Quicken and WalletHub are also popular but with fewer users trusting them.
The survey shows that many people are worried about rising credit card debt, but many don’t have a clear plan to pay it off.
Inflation is the biggest concern, and most Americans think the government should step in to help by limiting credit card interest rates.
Click here to read the full report.
It’s important for everyone to create a plan to manage their spending and debt to avoid getting into trouble.