: ‘Timing couldn’t be worse’: Inflation is easing, but more people are using credit cards for unexpected expenses — and the next Fed meeting will raise borrowing costs

by | Jan 27, 2023 | Stock Market

A record number of people say they would need to pay for an unplanned $1,000 expense by using their credit card, according to a new survey showing the burden of high prices even as inflation rates ebb from four-decade highs. One quarter of people said they would rely on credit cards and have to gradually pay off $1,000 in unanticipated costs for something like a car repair or a medical problem, according to a Bankrate.com survey released this week.

That’s the biggest percentage of people saying they would need to finance the un-budgeted $1,000 expense through credit cards since Bankrate began asking about topic in 2014. The number is up from 20% one year earlier and up from 16% in January 2020, the survey noted. We want to hear from readers who have stories to share about the effects of increasing costs and a changing economy. If you’d like to share your experience, write to readerstories@marketwatch.com. Please include your name and the best way to reach you. A reporter may be in touch More than four in ten poll participants (43%) said they could cover the cost with savings, down slightly from the record high of 44% last year who said they could pay with savings. It’s no surprise the current economic climate is the culprit behind saving less. Around two-thirds (68%) said inflation and incr …

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