Survey: Americans paying off debt during pandemic

The website money.com recently released the findings in a survey of 2,200 US households and how they handled their credit during the pandemic.

 Beginning in March when the COVID-19 began in earnest, America hit a historical low point its economy. The combination of a pandemic and 22 million people filing for unemployment led it to an all-time low in consumer optimism. America is now starting to regain its footing, and the country in general is now open to spending more. 

In order to understand how the pandemic has shaped spending behaviors, Money and Morning Consult surveyed 2,200 U.S. adults about their credit card usage and debt over the last six months, focusing on debt accumulation and psychological stress. 

With credit card debt, decreasing steadily since March – Americans are using this opportunity to chip away at their credit card balance. More than half of the survey pool answered that they’ve put money towards a debt as a direct result of the pandemic (more than any other post-pandemic financial plan – including mortgages, refinancing loans, or buying a home/car). 

Stress and anxiety are still very active when it comes to credit card debt. Americans said they considered credit card debt to be more stress-inducing than any other debt they were asked about, including mortgages and loans.

According to the survey, approximately one-quarter of Americans are spending more now than they were back in March, with this number being even higher for those living in cities compared to those in the suburbs.

Approximately one-third of Americans agree they are swiping their credit cards more at grocery stores and restaurants. On the other hand, those that started a new job after February 15th are more likely to be spending less on discretionary items. 

Naturally, those that have been laid off or reduced income because of the pandemic are spending less.  In line with the last recession, those going through financial hardship right now are leaning more on credit card debt.

For the complete story you can check it out here.