Report: People With Credit Card Debt Are Outspending People Without Debt

Kelli Wiese
July 11, 2019 - 3:02 pm
Credit Card

iStock / Getty Images Plus

Categories: 

DALLAS (KRLD) - The study by CreditCards.comshows people with debt are spending the most in seven of nine discretionary spending categories. 

Ted Rossman, an industry analyst for CreditCards.com, says credit card debtors spend more money on dining/takeout, clothing, shoes and accessories, cell phone services/upgrades, out-of-home entertainment, fitness, subscription services and personal care/beauty than those who do not have debt.

Those who are debt-free spend more on car payments and leisure travel than those with debt.

Rossman says, "Credit card rates are at record highs. The average is close to 18%. So, on all these discretionary items if you have credit card debt you are effectively paying 18% more for all of that because you are carrying debt."

He recommends balance transfer credit cards for those in debt. Also, he recommends cutting expenses and finding ways to boost income.