A significant number of Americans use credit cards to fund purchases they otherwise couldn't afford, with dining out (44%) being the most common expense across all generations. Following closely are clothing and accessories (40%) and leisure activities such as vacations (38%). Millennials lead in spending on leisure activities (42%), while Gen X spends the most on clothing and accessories (45%). Additionally, 31% of respondents use credit cards to cover monthly bills they couldn't otherwise afford, with Gen Z being the most reliant (46%). Many admit to using credit cards to appear more financially stable, with 55% charging over $250 monthly and 14% over $1,000. Gen Z is particularly inclined to charge over $1,000 (20%) for this purpose. The consequences of such behavior are severe: 39% report maxing out their credit cards, 35% accrue unaffordable debt, and 31% suffer credit score damage. These financial pitfalls highlight the dangers of using credit cards irresponsibly and the importance of managing debt effectively.
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