American Credit Card Spending Spikes As Interest Rate Climbs

The number of U.S. households that use credit cards to cover daily expenses continues to climb.

Data from the U.S. Census Bureau reveals 35 percent of American families use credit cards to pay for essentials. That’s up from 32 percent in November and 21 percent in April of last year.

While that’s bad news for consumers, it’s good news for U.S. banks, which continue raising interest rates for credit cards. In fact, Bankrate predicts the interest rate will hit a four-decade high of 20.5 percent sometime this year.

How much of your income goes to paying credit card bills?