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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Over the past year, American consumers have seen record stock market highs, the lowest unemployment rate in 50 years and continued wage growth. But they’ve also experienced trade war tensions, rising credit card delinquency rates, and increased about the future. And as growth slows on the longest economic expansion in U.S. history, nearly a third (31 percent) of credit cardholders hold higher card balances than they’ve had on average since 2009 amidst the Great Recession, according to the latest survey from Bankrate. Still, Americans are generally feeling optimistic regarding their credit cards as the new year approaches. Bankrate surveyed three main factors to determine how Americans’ relationships to their credit cards have changed over the past year: their ability to pay bills, stress related to credit card debt and maximizing rewards. Paying credit card bills
Compared to January 2019, the majority of cardholders say their ability to pay credit card bills on time is now about the same (55 percent), while 34 percent say it’s better and just 11 percent say worse. Millennials are the cohort most likely to feel more positively about their ability to pay bills on time today, relative to the beginning of the year. Forty-six percent of millennials say they feel better compared to 35 percent of Generation X and 23 percent of baby boomers. Stress over credit card debt
Similarly, the majority of cardholders feel about the same (44 percent) or less stressed (33 percent) about their credit card debt, while only 23 are more stressed. Millennials are most likely to be more stressed now than they were at the beginning of the year. Thirty-one percent of the cohort reports feeling more stressed about their credit card debt today, while just 16 percent of baby boomers and 26 percent of Gen X say the same. Among just those cardholders who have credit card debt, 36 percent feel about the same amount of stress as they did at the beginning of the year, 33 percent feel less stressed and 31 percent feel more stressed. Maximizing rewards
Of the three factors surveyed, cardholders are most likely to experience no change in how they maximize rewards compared to the beginning of the year. Sixty-two percent of people say they are maximizing rewards about the same as they have since January, while 20 percent are maximizing them more and 18 percent less. Millennials, again, have improved the most. Thirty-one percent report maximizing rewards more, compared to 21 percent of Gen X and 12 percent of baby boomers. If you’re in debt, credit card rewards should be far from your top priority, says Ted Rossman, industry analyst at Bankrate. Even a high-earning rewards card won’t cancel out the interest payment you’ll make on a card earning a 15 percent APR. Once you’ve eliminated your debt, though, may be as simple as finding the right card for your spending habits, whether most of your monthly budget goes towards or you want to rack up points as a frequent flyer using . Think about whether you prefer the simplicity of cash back or strategizing with points and miles and decide if you’re willing to pay an annual fee. The perfect card for you, when used wisely, can help you save hundreds throughout each year on your spending. Decade in review
While many cardholders say they are faring well at the end of 2019, they’ve also made little progress in paying down balances since 2009. Among cardholders, 37 percent say their credit card balance is about the same as it has been since 2009. Thirty-two percent say their balances are lower than at most times over the past ten years while 31 percent say they are higher. Things are even more challenging for those who are in credit card debt. Among those in debt, 40 percent say their current debt is higher than usual over the past decade, 35 percent say it’s lower and 25 percent say about the same. Build healthy credit card habits to last
If your credit card balance hasn’t improved over the past year, or you’ve struggled to keep debt in check over the decade, begin changing your habits to form a lasting solution that will improve your situation in the new year and beyond. “More than half of over money issues, and a major reason is that they feel a lack of control,” Rossman says. “Take back control by putting some strategies down on paper and starting to execute against them. These could include signing up for a zero balance transfer credit card, taking on a side hustle, selling extra possessions and cutting expenses.” Use a balance transfer card
One of the most effective ways to eliminate your debt quickly is with a offering zero percent interest for an introductory period. Credit card interest rate averages continue to hover above and many people pay upwards of 25 or 30 percent on some cards, often far exceeding the rates charged for and . Some of the best balance transfer cards on the market today offer , or even introductory periods over which you can pay your balance off without these sky-high interest rates. Many of these cards do charge a balance transfer fee and will incur interest after the introductory period ends, so do your research to find the balance transfer option that works best for your debt payoff timeline. “Being able to pause the interest clock for 15-21 months provides you with a powerful tailwind to get out of debt quickly at the lowest possible cost,” Rossman says. “Ideally, you’ll avoid putting new purchases on this card and will commit to paying enough each month that you’ll be completely debt-free by the end of the term.” Try other payoff methods
There are smaller tricks you can try to lower your debt balances and reduce your credit card-related stress as well. Set up monthly reminders to both check your balances and make timely payments, or put your payments on autopay each month. Review your statements regularly to track exactly where your money goes. You can also reduce balances more quickly, cut your interest owed and lower your credit utilization ratio by making each pay period or whenever you have extra money available. Cut expenses and raise income
While much easier said than done, the most effective way to ensure your debt payoff is by making lasting changes to your spending habits. Develop a to cut unnecessary expenses and look for ways to . “I especially like cutting monthly expenses because those have a 12x impact versus doing the same thing one time,” Rossman says. “Take a close look at your recurring subscriptions (streaming, meal kits, etc.), your grocery spending, your dining out habits and your entertainment budget. Cooking at home or taking public transportation more frequently can also help you save money and funnel more towards your debt.” Methodology
Bankrate.com commissioned YouGov Plc to conduct the survey. All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,557 adults, including 1,908 credit cardholders. Fieldwork was undertaken on October 16-18, 2019. The survey was carried out online and meets rigorous quality standards. It employed a non-probability-based sample using both quotas upfront during collection and then a weighting scheme on the back end designed and proven to provide nationally representative results. SHARE: Kendall Little is a personal finance writer who previously covered credit card news and advice at Bankrate. Kendall currently is a . She is originally from metro Atlanta and holds bachelor’s degrees from the University of Georgia in both journalism and film studies. Before joining Bankrate in August 2018, Kendall worked in digital communications throughout various industries, including education, health care and television. Related Articles