INDIANAPOLIS — If you've been using your credit card more often, you aren't alone. A recent report from the Federal Reserve Bank of New York shows credit card usage is up across the country.
"When they come in here, they are almost spending their credit limit, " Tynesha Braxton a manager at Rue21 in Hamilton Town Center said.
She says they approve about six in store credit cards every day. That’s a higher number than she says she has ever seen of people seeking credit at the store where she works.
"We have a new program which is our CC program or credit cards,” Braxton said. “People are spending tons of money when it comes to CC's because this year is challenging.”
Several people have said gifts have been costing them more money than in years past.
"Toys are more expensive, I feel like 300 dollars this year doesn't get you like half as much as you would get last year, “Tabitha Dillon a shopper at Hamilton Town center said.
"Typically, anywhere from I'd say 25-35 percent increase across the board whether it be gifts, groceries, whatever, " Greg Kelly another shopper at Hamilton Town Center said.
Those increased prices could be leading people to swipe their credit cards more often. A report that was published in November by Federal Reserve Bank of New York shows that debt is up across the country.
"Collectively we are nearly at pre-pandemic credit card debt,” Kristen Ahlenius the Director of Education at Your Money Line said. “We are only about two billion shy collectively from where we were pre-pandemic which would put us at a record high. "
With debt up it could be harder to pay off because interest rates have increased and likely will continue to.
"It just means that if you're someone who's trying to continue to improve your financial wellness, it might be harder right now due to rising interest rates,” Ahlenius said.
That’s why Ahlenius says it's better to stay the course and pay off your credit card rather than take out a new line of credit.
"What I would prefer to see someone do is go back through your spending and really see where your money goes. What are you comfortable with, what are you not comfortable with and pay down those credit card balances without taking out a new line of credit if you can,” Ahlenius said.
If you currently have a high interest rate on a credit card the financial expert we spoke with says, simply asking for a lower rate could work in your favor. A recentLending Tree study showed that 70 percent of people who asked for a lower interest rate were able to get one.
