Debt at Record Highs As Interest Rates Rise

Managing Credit

KAHOOT�VERSION

1. What percentage of Gen Z has a credit card in the US?

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1. 15%
2. 35%
3. 50%
4. 75%

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DEBT AT RECORD HIGHS AS INTEREST RATES RISE FEBRUARY 24, 2023 EDITION | NEXT GEN PERSONAL FINANCE

• What percentage of Gen Z has a credit card in the US?

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• 15%
• 35%
• 50%
• 75%

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DEBT AT RECORD HIGHS AS INTEREST RATES RISE FEBRUARY 24, 2023 EDITION | NEXT GEN PERSONAL FINANCE

2. How many Americans with credit card debt are not aware of the interest rate they may be charged?

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1. 28%
2. 43%
3. 67%
4. 95%

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DEBT AT RECORD HIGHS AS INTEREST RATES RISE FEBRUARY 24, 2023 EDITION | NEXT GEN PERSONAL FINANCE

2. How many Americans with credit card debt are not aware of the interest rate they may be charged?

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• 28%
• 43%
• 67%
• 95%

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DEBT AT RECORD HIGHS AS INTEREST RATES RISE FEBRUARY 24, 2023 EDITION | NEXT GEN PERSONAL FINANCE

3. True or False? In late 2022, the average interest rate charged on credit card debt was 15%

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1. True
2. False

DEBT AT RECORD HIGHS AS INTEREST RATES RISE FEBRUARY 24, 2023 EDITION | NEXT GEN PERSONAL FINANCE

3. True or False? In late 2022, the average interest rate charged on credit card debt was 15%

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• True
• False

DEBT AT RECORD HIGHS AS INTEREST RATES RISE FEBRUARY 24, 2023 EDITION | NEXT GEN PERSONAL FINANCE

4. In early 2023, over 35% of US adults said that they had more credit card debt than:

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1. student loan debt
2. home mortgage debt
3. retirement investments
4. emergency savings

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DEBT AT RECORD HIGHS AS INTEREST RATES RISE FEBRUARY 24, 2023 EDITION | NEXT GEN PERSONAL FINANCE

4. In early 2023, over 35% of US adults said that they had more credit card debt than:

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• student loan debt
• home mortgage debt
• retirement investments
• emergency savings

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DEBT AT RECORD HIGHS AS INTEREST RATES RISE FEBRUARY 24, 2023 EDITION | NEXT GEN PERSONAL FINANCE

5. What do most experts recommend for the average consumer when interest rates are high?

1. Use credit for wants and needs.
2. Use credit only for necessities.
3. Avoid credit no matter what.
4. Avoid credit unless you get an income tax refund.

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DEBT AT RECORD HIGHS AS INTEREST RATES RISE FEBRUARY 24, 2023 EDITION | NEXT GEN PERSONAL FINANCE

5. What do most experts recommend for the average consumer when interest rates are high?

• Use credit for wants and needs.
• Use credit only for necessities.
• Avoid credit no matter what.
• Avoid credit unless you get an income tax refund.

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DEBT AT RECORD HIGHS AS INTEREST RATES RISE FEBRUARY 24, 2023 EDITION | NEXT GEN PERSONAL FINANCE

You’ve completed the exercise, now it’s time to learn

more about the current event:

DEBT AT RECORD HIGHS AS INTEREST RATES RISE FEBRUARY 24, 2023 EDITION | NEXT GEN PERSONAL FINANCE

Discussion Prompt:

Do you think teens should have credit cards? Why or why not?

DEBT AT RECORD HIGHS AS INTEREST RATES RISE FEBRUARY 24, 2023 EDITION | NEXT GEN PERSONAL FINANCE

Extend Your Learning

Three Relevant Resources from NGPF:

• What percent of Americans with credit card debt won't be able to pay it in 1 year? (QOTD)
• RESEARCH: Credit Card Laws (Activity)

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References:

• America’s credit card roulette economy (Politico)
• U.S. credit card debt jumps 18.5% and hits a record $930.6 billion (CNBC)
• 50% of Gen Z has a credit card —and they’re more credit active than millennials (CNBC)
• Credit card debt hit a record high. Here’s one way to pay it down. (Washington Post)
• Credit card debt is at a record high. How worried should we be? (Marketplace)
• US Consumers Roll Over More Credit-Card Debt as Inflation Bites (Bloomberg)

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DEBT AT RECORD HIGHS AS INTEREST RATES RISE FEBRUARY 24, 2023 EDITION | NEXT GEN PERSONAL FINANCE