What’s Driving Consumers to Overspend? Credit Karma Says ‘FOMO’ to Blame

According to Credit Karma, total U.S. credit card debt “hit a record high at the end of 2018, slightly surpassing a peak last seen in 2008, during the recession.” And, on average, people are holding around $3,100 of credit card debt at any one time. In its most recent research, Credit Karma said by age group Generation X had the highest average credit card debt per person at about $3,800 followed by Baby Boomers with nearly $3,600 while Millennials, who, as a cohort, are earning less money, have more than $2,660 in credit card debt. See related story: Today’s Consumer: Cash-strapped, Loaded With Debt, Living Beyond Their Means But what’s driving consumers to load up their credit cards? And how is this impacting their credit scores? Here, Dana Marineau, vice president of brand, creative and communications at Credit Karma, sheds some light on what’s behind the numbers and what consumers can do to improve their financial situations. WWD: What’s pushing consumers toward taking on heavy credit card debt? And how does that impact their credit scores, if at all? Dana Marineau: FOMO, or fear of missing out, for one. Our research shows nearly 40 percent of Millennials overspend to keep up with friends and 27 percent

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