This Week In Credit Card News: Consumers Go Deeper Into Debt To Cover Everyday Expenses

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1. “Nearly one-third (31%) of U.S. adults doing back-to-school shopping this year will go into debt to pay for it or already have, according to Bankrate’s newest Back to School Survey.

   The share of U.S. adults who were using credit cards or loans to make ends meet amid rising prices rose to nearly 40% in October 2023,
   up from roughly 37% a year prior, according to research from the Federal Reserve Bank of Boston.

   Also, about a third (34%) of adults who lived in a household experiencing a job loss used a credit card or a loan to handle price increases. Gen Z and millennials were the age groups most likely to use loans and credit cards to respond to higher prices.

   Besides relying more on credit cards:

   consumers have reduced their spending by eating less restaurant food, canceling subscriptions, purchasing less fresh produce and
   meat and switching to generic products.
   Survey respondents also reported contributing less to their savings, working more, moving to less expensive housing and delaying
   significant purchases.

   Three major retailers—Dollar General, Dollar Tree and Kroger—charge consumers more than $90 million annually via “cash-back” fees charged to access their own funds at a register, the CFPB said.

   While the cost to merchants for processing cash-back transactions “may be a few pennies,” fees passed on to consumers are often far higher.

   ATM Fees Rise to $4.77, Hitting 26-Year High

   ATM fees have risen yet again in 2024, going up to $4.77 compared to $4.73 last year.
   This is the highest rate since 1998, according to a report by Bankrate

   . In addition, the average rate of overdraft fees has risen from $26.61 in 2023 to $27.08 in 2024, according to Bankrate. Overdraft fees peaked at $33.58 in 2021. However, many banks are removing or restricting overdraft fees, such as Citi removing them in 2022, Regions adding grace periods in 2023 and Discover introducing overdraft protection this year.

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   Biden wanting to impose regulations on predatory bank fees?!?!………no..no..he’s a boomer….

   Far right extremists libertarians tech bros predatory practices dismantling America economy system….while mooching from our taxpayers money handouts…

   but..but..it’s the free of consequences market!… well..you could start your own bank….🤑