Americans have $1.13 trillion in credit card debt

[Vambram]

Americans have $1.13 trillion in credit card debt. Here are some expert tips to help pay yours off

Cardholders are carrying more credit card debt than ever before and paying record high interest rates. Here are the best ways to jump-start debt repayment.

www.cnbc.com

Credit cards are an Achilles’ heel for many people.
Collectively, Americans now owe $1.13 trillion on their cards, and the average balance per consumer is up to $6,360, both historic highs.
Not only are more cardholders carrying debt from month to month but more are increasingly falling behind on payments, recent reports show.

Credit card debt hits a 'staggering' $1.13 trillion. Here's why so many Americans are under pressure

Strong consumer spending boosted credit card balances to a new record high in the fourth quarter, according to the Federal Reserve Bank of New York.

www.cnbc.com

Americans lean more on credit cards as expenses stay high: 46% of cardholders now carry debt from month to month

More Americans carry credit card debt from month to month as living expenses stay high, according to a new report by Bankrate.

www.cnbc.com

 

[rambot]

Companies should be paying the workers they have more money.

But they're not and they don't.

 

[Fantine]

Good to see something other than Dave Ramsey. As the article said, the debt snowball is the most costly of the three.

We have never had serious debt problems, but I always did my homework on financial issues, and based my decisions on cost-effectiveness, not Dave Ramsey

 

[Laodicean60]

It shows that some Americans are struggling though inflation is going down there are still elevated prices of food. I know my property taxes and insurance have risen maybe this has a small effect. What aggravates me the most about credit cards is how fast they raise the interest rates while savings accounts offer 1% at big banks.

As the article said, the debt snowball is the most costly of the three.

I kind of like being debt-free. I don't care what the big banks say or anyone else. Anytime you have to pay some percentage to a bank or a credit card that is lost income.

 

[rambot]

Americans have $1.13 trillion in credit card debt. Here are some expert tips to help pay yours off

Cardholders are carrying more credit card debt than ever before and paying record high interest rates. Here are the best ways to jump-start debt repayment.

www.cnbc.com

Credit cards are an Achilles’ heel for many people.
Collectively, Americans now owe $1.13 trillion on their cards, and the average balance per consumer is up to $6,360, both historic highs.
Not only are more cardholders carrying debt from month to month but more are increasingly falling behind on payments, recent reports show.

Credit card debt hits a 'staggering' $1.13 trillion. Here's why so many Americans are under pressure

Strong consumer spending boosted credit card balances to a new record high in the fourth quarter, according to the Federal Reserve Bank of New York.

www.cnbc.com

Americans lean more on credit cards as expenses stay high: 46% of cardholders now carry debt from month to month

More Americans carry credit card debt from month to month as living expenses stay high, according to a new report by Bankrate.

www.cnbc.com

Since covid there has been a significant redistribution of wealth from the lower to upper classes.

 

[Richard T]

The 900 billion debt in 2019 was higher in real terms if you take out inflation. Inflation helps debtors unless their incomes do not go up. To often incomes lag, or the distribution of the increase goes to the top not to the bottom as someone else already pointed out. The same principle applies in business. Company xyz saw sales increase by 3%. That sounds good but if inflation was 7% then they are falling behind.

 

[rambot]

Hey Folks.

Almost 2 years later and [drumroll]

$1.21 trillion


If you compare trends....well, that's pretty awful.

Good luck Americans! For the richest country, you guys have some spending problems. How are you gonna sort that out? Children of Men kinda thing?

 

[Fantine]

Higher interest rates, especially on credit cards, make it harder for people to pay debt because so much of each payment goes to interest.

We pay our credit card bills in full each month. We are retired; when we were raising three children we sometimes fell behind.

I'm not a Dave Ramsey debt snowball fan. I think it's important to pay off the highest interest debt first.

I look at the debt problems people have today as due to income inequality. The middle class is shrinking. The top 1% is socking it away. The poor go to payday lenders and pay loan shark rates when they're desperate.

In other words, it's due to Republican policies.

 

[RileyG]

Companies should be paying the workers they have more money.

But they're not and they don't.

You’re so, so right! Some companies are so tight with their money they cut hours and let people go. Speaking from experience.

Sigh

 

[RileyG]

Hey Folks.

Almost 2 years later and [drumroll]

$1.21 trillion


If you compare trends....well, that's pretty awful.

Good luck Americans! For the richest country, you guys have some spending problems. How are you gonna sort that out? Children of Men kinda thing?

Is this really the American dream? Debt and more debt?

Sigh

 

[FAITH-IN-HIM]

Higher interest rates, especially on credit cards, make it harder for people to pay debt because so much of each payment goes to interest.

We pay our credit card bills in full each month. We are retired; when we were raising three children we sometimes fell behind.

I'm not a Dave Ramsey debt snowball fan. I think it's important to pay off the highest interest debt first.

I look at the debt problems people have today as due to income inequality. The middle class is shrinking. The top 1% is socking it away. The poor go to payday lenders and pay loan shark rates when they're desperate.

In other words, it's due to Republican policies.

This phenomenon is not a result of policies from either the Democratic or Republican parties; instead, it stems from American culture and a widespread desire for material possessions. The emphasis frequently centers on acquiring numerous goods—televisions, for example, are often found not only in living rooms and bedrooms but also in dining rooms and kitchens. Many households own multiple refrigerators, sometimes placing extra units in basements or garages. These habits reflect a broader pattern of consumerism among Americans. In the last five years alone, over one billion iPhones and Samsung phones have been sold in the United States. No other culture demonstrates such an intense appetite for material things. Our drive for consumption seems limitless. Just last Friday, Americans spent $11 billion purchasing items that most people do not actually need. Ultimately, no policy or solution addressing income inequality will make a difference unless Americans learn to live within their means.

 

[RileyG]

This phenomenon is not a result of policies from either the Democratic or Republican parties; instead, it stems from American culture and a widespread desire for material possessions. The emphasis frequently centers on acquiring numerous goods—televisions, for example, are often found not only in living rooms and bedrooms but also in dining rooms and kitchens. Many households own multiple refrigerators, sometimes placing extra units in basements or garages. These habits reflect a broader pattern of consumerism among Americans. In the last five years alone, over one billion iPhones and Samsung phones have been sold in the United States. No other culture demonstrates such an intense appetite for material things. Our drive for consumption seems limitless. Just last Friday, Americans spent $11 billion purchasing items that most people do not actually need. Ultimately, no policy or solution addressing income inequality will make a difference unless Americans learn to live within their means.

Yup. It’s driven by materialistic wants. Stores want $$$$ so people spend money on things that aren’t necessarily needed. I’m very guilty of this.