Forty-six million Americans (almost 1 in 5 adults) think they will miss at least one credit card payment due date in 2020, according to a new WalletHub credit cards survey released today. This indicates that cracks in the foundation of consumers’ finances are beginning to show, under the strain of mounting debt. The average American household already owes a near-record $8,700 to credit card companies. In light of that, WalletHub’s survey examined people’s experiences with late payments and their attitudes regarding the likelihood of future encounters.
Why do so many people
expect to miss credit card due dates in 2020?
“The reason that roughly 46 million people expect to miss at least one credit
card due date in 2020, according to WalletHub’s latest credit card survey, is that we’re
stretched too thin – in terms of both time and money,” said WalletHub CEO
Odysseas Papadimitriou. “U.S. credit card users started 2020 with more than $1
trillion in credit card debt. Up until this point, we’ve managed to keep our
accounts in good standing at historical rates. However, expecting to miss due
dates is a sign of cracks in the foundation. And not only do 18% of people
expect to miss at least one credit card due date in 2020, but 30% us say that
not having enough money is the reason we’re most likely to be late.”
What are some tips for credit
card users concerned about late payments?
“The easiest way to avoid late payments, and the fees and credit score damage
that can accompany them, is to set up automatic monthly bill payments from a
checking account for at least the minimum amount due each month. This will at
least remove forgetfulness as a potential cause,” said WalletHub CEO Odysseas
Papadimitriou. “Automated payments won’t do much good if you don’t have enough
money in your bank account, however. So careful budgeting and saving are key,
too.”
Is it worth asking credit
card companies to waive late fees?
“Credit card users who almost always pay their monthly bills on time but fail
to do so once in a blue moon should definitely try to ask their credit card
company to waive any associated late fee. It really can’t hurt, and 9 in 10
people who’ve tried in the past say they’ve been successful at least once,
according to WalletHub’s new credit card
survey,” said WalletHub CEO Odysseas Papadimitriou. “This is
actually one reason why credit cards that emphasize ‘no late fees’ as a feature
are sometimes overrated. You might get that on other cards, anyway, just by asking.
Plus, ‘no late fee’ often actually means no fee the first time you miss a due
date. After that, all bets are off.”
Key Survey Findings
Credit card issuers are forgiving…if you ask nicely.
Nearly 9 in 10 people who have tried to get a credit card late fee waived were successful. Women are 18 percent more likely to have tried to get a fee waived than men but are also 2 percent less likely to have been successful.
Payment priorities change with age.
People aged 18 to 44 are most worried about missing credit card payments. The 45-59 demographic is most concerned about their mortgage, while those over 59 put tax payments as their biggest worry.
Luxury can lead to lapses.
People with high income are almost twice as likely to miss a credit card payment due to forgetfulness as people with low income.
Men and women react differently to fees.
When asked about their attitudes toward getting a late fee, women are 39% more likely than men to feel “punished.” Men are twice as likely to feel “indifferent.”
