Americans are dealing with record levels of credit card debt and it could be why nearly three in four Americans said credit cards are a challenge to managing finances, according to a recent survey.

Most Americans (64%) said they felt “in control of their finances,” but 79% think they could be doing a better job managing them, according to the Affirm survey. 

Topping the list of strategies used to keep finances under wraps was saving more, with 68% of Americans employing the technique in the first half of the year. A recent increase in saving is also why 76% said they felt ready for a potential recession. 

Also read | AVERAGE CREDIT CARD BALANCES RISE TO MORE THAN $6,000

Despite the uptick in savings, the average person said they spent $350 over budget in the past six months, and 83% said they planned to adjust their budget for the remainder of the year, according to the survey.

Part of the reason why Americans may be overextending their spending is because of growing credit card debt. Credit card balances increased to a new high of $1.03 trillion in the second quarter of 2023, according to the latest report by the Federal Reserve Bank of New York. 

“The reality is that the average American has three credit cards and nearly $6,000 in revolving credit card debt, while financial institutions collect billions in late fees each year,” Affirm President Libor Michalek said. “That is a lot of money coming from consumers’ pockets when they need it most.”

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