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In a blog post, Experian wrote that monthly debt payments were “still lower than they were during the pandemic.” (iStock)
Despite high inflation and rising costs, Americans are paying less monthly debt than they did at the height of the COVID-19 pandemic, according to Experian.
credit bureau wrote in a blog post “Overall monthly payments are still lower than they were during the pandemic.” Americans’ average monthly debt payments in June were $1,014, $31 less than their average payments during the pandemic.
The decrease is due to lower payments on credit card debt, which averaged $169 in June, compared to $203 in March 2020. However, he had an increase in monthly payments in June compared to 2020, both on his mortgage and auto loan.
“Credit card balances fell soon after the pandemic began as consumers partially or completely stopped spending on many goods and services,” said Experian. “This spending cut, combined with government assistance in the form of stimulus checks and other benefits, has increased bank balances.”
If you’re looking for a personal loan to pay off your credit card debt, it’s imperative that you hunt around for the lowest possible interest rates. You can compare the interest rates of
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Debt servicing lower than during pandemic but trending up
According to Experian, at a national level, the average minimum monthly credit card and loan payments that consumers pay increased in June each year.
Average monthly payments for credit cards, mortgages and auto loans all increased from what consumers paid in June 2021. Mortgage payments increased by $65.
“The increase in average monthly mortgage payments is also not surprising, as consumers rushed to buy inventory left over as new home construction sites during the pandemic,” said Experian. “But the majority of these mortgages were financed before mortgage rates started to rise in late 2021. Higher prices, not higher mortgage rates, caused most of the rise. more signs.
Experian also says most types of loans (auto loans, mortgages, personal loans) typically have fixed interest rates and are not directly affected by Federal Reserve rate hikes during the repayment period. . However, credit cards are typically issued with variable interest rates, so rising interest rates can ultimately impact the minimum monthly payments consumers are required to make.
Interest rates on personal loans vary greatly depending on your credit score and the term of the loan. If you want to know what personal loan interest rates apply, you can use an online tool like Credible to compare various private financial options without affecting your credit score.
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Consumers often rely on credit cards to pay for essentials
According to Experian, consumers were more likely to use credit cards to pay for gas and groceries in June, especially if they earned rewards such as cash, points and airline miles.
Recent Wells Fargo research says 71% of Americans have a Points credit card.
Nearly half of these cardholders use these earned rewards to offset some of their daily expenses. And two-thirds (65%) of them say they care more about credit card rewards than ever before.
If you want to spend less, consider taking a personal loan to pay off high-interest debt at a lower interest rate and save money each month. Visit Credible to see your personalized interest rate today.
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Have a financial question and don’t know who to ask? Send an email to Credible Money Expert (moneyexpert@credible.com). Your questions may be answered by Credible in the Money Expert column.
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