Open thread for night owls: Credit cards still keeping many households afloat

Demos has a new report up, The Plastic Safety Net, based on its 2012 National Survey on Credit Card Debt of Low-and Middle-Income Households. Among the findings:

' In 2012, the average credit card debt totaled $7,145, down from $9,887 in the 2008 survey.

' 40 percent of households used credit cards to pay for basic living expenses such as rent or mortgage bills, groceries, utilities, or insurance, in the past year because they did not have enough money in their checking or savings accounts, a rate comparable to 2008.

' Nearly half of households carried debt from out of pocket medical expenses on their credit cards. The average amount of medical credit card debt was $1,678.

' 86 percent of households that incurred expenses because of unemployment in the past year took on credit card debt as a result.

' Among those who say they have poor credit, 55 percent say unpaid medical bills or medical debts contributed.

' Because of the 2009 Credit Card act, the number of households who report paying late fees on their credit cards has declined dramatically. In the 2008 survey, half of households reported accruing late fees; in 2012, it was 28 percent.

' Those who did make late payments were significantly less likely to see their interest rate increase as a result: 24 percent fewer households reported interest rates increasing as a result of a late payment in 2012 than in 2008.

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