(VitalNews.org) – U.S. credit card debt has been an increasing problem over the years, and it has reached a new record number.
According to the Federal Reserve Bank of New York, Americans’ combined credit card debt just hit $1 Trillion. Looking at only 10 years ago, the combined credit card debt for Americans was $680 Billion.
Experts are worried about this trend as many Americans have held a credit card balance that they are not fully paying off. Many think this was a change in the way people benefited during the pandemic. For example, many Americans were getting extra benefits through EBT as well as stimulus checks, however when those extra payments stopped, many felt the effects of it.
Statistics showed that in 2021 39% of Americans held credit card debt month to month, whereas the statistics have updated and now 47% of Americans hold credit card debt from month to month.
Many of the common people who have credit card debt are low-income borrowers, younger generations, and people who have other kinds of debt. The debt among these groups of people has steadily increased over the years, adding to the total American credit card debt.
Another problem that is adding to the credit card debt issue is that, in order to combat inflation, the Federal Reserve has raised interest rates, but this is an extra fee for anyone who is not paying their credit card bill in full.
For those who are sitting on regular card debt, there are a few options that you have, if you want to get rid of that debt. You can sign up for a balance transfer card that allows you to move your balance over to another card with a lower interest fee for a limited time. You can also contact the credit card company to discuss a lower interest rate or other options.
Experts say to be cautious and come up with a plan first as opening up credit lines and closing them can cause your credit score to drop.
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