When nearly 40% of Americans fear credit card debt more than the coronavirus, it might be a problem.
Signaling just how stressed Americans are over the amount of consumer debt, not even a global pandemic can knock the heavy burden debt causes off its prominent perch.
With the COVID-19 edition of Halloween just days away and consumers still expected to spend roughly $8 billion on the occasion, the personal-finance website WalletHub announced the results of its national Halloween Spending & Financial Fears Survey, along with its picks for 2020’s Worst Credit Cards to highlight scary offers that people should avoid this holiday season.
“Almost 40% of Americans are more scared of credit card debt than the coronavirus in part because of political allegiances, but also due to the fact that credit card debt might seem more tangible to an indebted individual who has yet to know someone with COVID-19,” Jill Gonzalez, WalletHub analyst, said in a statement. “Current events aside, money was the number one stressor for Americans for many years before the coronavirus pandemic, so it shouldn’t be a surprise that credit card debt and money problems in general still scare a lot of us, maybe even more so than before.”
Highlights (or lowlights) of this year’s survey include:
- 22 million more people have nightmares about money problems this year than last year.
- Almost 90% of Americans think that politicians prey on peoples’ financial fears.
- Roughly 13 million more people are scared about their kids’ financial futures this year than last year.
- Almost a third of Americans think their finances are a horror show.
- 130 million Americans think the coronavirus is the scariest thing about Halloween this year.
- The worst credit cards charge annual fees as high as $995 and APRs up to 36%.
Financial ‘horror show’
“The nearly 1 in 3 people who say their finances are a horror show apply that label for a variety of reasons, which obviously include the pandemic’s impact on the economy, along with debt levels that are still very high despite showing improvement in recent months,” Gonzalez added. “It’s tough to say your finances are looking good when you’re out of work or waiting for business to pick back up. You can’t ignore the possibility that some people are just being dramatic when saying their finances are a horror show, either.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
