Newrez: Credit Card Debt Weighs on Homeowners, but Most Say They Can Keep Up With Mortgage Payments

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Newrez, Fort Washington, Pa., found that more than half of homeowners carry a credit card balance month-to-month, but said they remain committed to homeownership and focused on paying down their debt.

“With credit card rates and consumer debt levels near record highs, many are exploring debt consolidation options—such as personal loans and home equity products—to pay down their balances more effectively,” Newrez said in a new report, Credit Card Debt Is Weighing on Homeowners, but Confidence in Homeownership Remains Strong.

Financial Strain and Homeowner Resilience

Financial pressure is impacting homeowners who carry credit card debt, Newrez said. Nearly 6 in 10 (59%) say their credit card debt has a negative impact on their financial situation, and 84% say they would feel significant relief if it were paid off. Many also report broader financial strain, with more than half (51%) losing sleep over finances, more than two-thirds (67%) feeling overwhelmed by their finances at least sometimes, and less than half (48%) feeling in control of their finances most or all of the time.

To manage these pressures, many homeowners are making tradeoffs in other areas of their finances. More than 7 in 10 homeowners with credit card debt (71%) have cut back on spending or saving over the past year because of it. This includes 41% who reduced travel, leisure, or discretionary spending, 37% who cut back on everyday expenses such as groceries, and 36% who reduced savings or emergency fund contributions.

But despite the financial pressure of credit card debt, homeowners remain resilient and continue to prioritize homeownership. Three-quarters view their credit card debt as manageable, and 84% say paying it off is a high priority. Among homeowners surveyed with both a mortgage and credit card debt, nearly 9 in 10 (89%) are confident they can keep up with their mortgage payments, and a similar share (90%) prioritize their mortgage payment over most other bills. Underlying that commitment is a belief shared by most homeowners with credit card debt that owning a home provides a sense of stability (89%) and is one of the best ways to build long-term wealth (84%).

“Homeowners are carrying a heavy financial load right now, but their belief in homeownership hasn’t wavered,” Newrez Chief Commercial Officer Leslie Gillin said. “Even with credit card debt weighing on them, they’re focused on protecting their home and taking steps to improve their financial outlook.”