Thrifty Thinking: Halloween Spending & Financial Fears

Personal-finance website WalletHub recently announced the results of its nationally representative Halloween Spending & Financial Fears Survey, along with its picks for 2020’s Worst Credit Cards to highlight scary offers that people should avoid this season.

Below, you can find a handful of highlights:

• Nearly 40% of Americans are more afraid of credit card debt than the coronavirus.
   
• 22M more people have nightmares about money problems this year than last year.
   
• Almost 90% of Americans think that politicians prey on peoples' financial fears.
   
• Roughly 13M more people are scared about their kids' financial futures this year than last year.
   
• Almost a third of Americans think their finances are a horror show.
   
• 130M Americans think the coronavirus is the scariest thing about Halloween this year.
   
• The worst credit cards charge annual fees as high as $995 and APRs up to 36%.

 
Q&A with WalletHub

Why are nearly 40% of Americans more scared of credit card debt than the coronavirus?

“Almost 40% of Americans are more scared of credit card debt than the coronavirus in part because of political allegiances, but also due to the fact that credit card debt might seem more tangible to an indebted individual who has yet to know someone with COVID-19,” said Jill Gonzalez, WalletHub analyst. “Current events aside, money was the number one stressor for Americans for many years before the coronavirus pandemic, so it shouldn’t be a surprise that credit card debt and money problems in general still scare a lot of us, maybe even more so than before.”
 
Why do so many people think their finances are a “horror show”?

“The nearly 1 in 3 people who say their finances are a horror show apply that label for a variety of reasons, which obviously include the pandemic’s impact on the economy, along with debt levels that are still very high despite showing improvement in recent months,” said Jill Gonzalez, WalletHub analyst. “It’s tough to say your finances are looking good when you’re out of work or waiting for business to pick back up. You can’t ignore the possibility that some people are just being dramatic when saying their finances are a horror show, either.”
 
What’s the best way to avoid the worst credit cards?  

“The best way to avoid the worst credit cards is to compare credit card offers based on your credit score and how you plan to use the card,” said Jill Gonzalez, WalletHub analyst. “People who are new to credit or have a bad credit score should focus on finding a credit card with no annual fee and approval requirements they can meet. People with good or excellent credit should look for credit card rewards that complement their biggest spending categories if they plan to pay their bill in full every month. For purchases that won’t be paid off by the due date, a low interest credit card is best. And if you have existing debt to get rid of, you’ll want to consider a 0% balance transfer credit card.”