According to Bankrate, 46% of credit card holders are currently carrying debt month-to-month due to inflation and paying for daily expenses. 50% of GenZ don’t know and don’t understand the APR linked to their debt. So what does this mean?
With no real idea of when inflation will start to go down, many young adults are relying on their credit cards to make purchases. What many of them do not understand is how carrying a balance can affect their credit score and the impacts of interest rates on their balance.
By carrying debt and not being able to pay back, people are racking up fees from the high interest rates and negatively impacting their credit scores. In a survey from Bankrate that asked which credit card feature is the best and most often used, 36% answered cash back rewards. Cashback is great, BUT, it can be more of a short-term strategy to pay down debt. Instead of thinking about immediate returns, young adults should start strategizing a plan for longer-term debt payoff, like choosing credit cards with 0 or low APR.
Enter Tomo, 0% APR/interest credit card that doesn’t require credit history. The Tomo card, also known as GenZ’s favorite credit card, has gained popularity among young adults due to its 0 APR and ability for card holders to never carry a balance. This is the perfect card in 2023 as more and more Americans are leaning on credit cards to pay off daily expenses.
For more information, please reach out to press@tomocredit.com.