About one in five Americans is hesitant to check their credit card statements even as spending has picked up since the COVID-19 pandemic began. This development coincides with a tightening monetary policy environment as the Federal Reserve continues to raise interest rates to combat inflation.
In a report published by travel website Upgraded Points, the company identified a number of behavioral inconsistencies in spending and saving habits after surveying about 3,500 Americans.
Most notably, about 20% of Americans were afraid to look at their credit card statements for fear of seeing their high balances. This is despite the fact that the “Upgrade Points” study found that participants turned to credit card spend to fund expensive purchases like vacations, car expenses, and electronics.
At the same time, it found that more than a third of respondents had a propensity for instant gratification and relied on credit to buy something they couldn’t afford but didn’t want to wait for.
However, the Upgraded Points results come with a caveat. The survey was conducted in April 2022 and in the last few months inflation and interest rates have been rising higher.
The latest reading from the Consumer Price Index (CPI) showed inflation hit 9.1% in June, a higher-than-expected reading. At the same time, a May survey by the Federal Reserve Bank of New York found that credit card balances totaled about $841 billion in the first quarter of 2022, up from $71 billion last year.
As inflation continues to rise, the Federal Reserve is expected to hike interest rates at its next meeting this week. Since March, the Fed has launched several rounds of rate hikes, with the most recent hike coming in June when rates rose 0.75%, the biggest hike since 1994.
https://www.ibtimes.com.au/1-5-americans-are-afraid-look-their-credit-card-statements-1834425?utm_source=Public&utm_medium=Feed&utm_campaign=Distribution 1 in 5 Americans are afraid to look at their credit card statements