56 Million Americans Trapped in Credit Card Debt for Over a Year

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• About 49% of Americans, categorized as 'debt revolvers', have been carrying credit card debt month-on-month, a rise from 39% in 2021.
• The total credit card balance in the U.S. escalated to a record $1.08 trillion by September last year.
• A significant portion of the population, around 56 million people, have been in debt for over a year.

In a recent development, the United States is witnessing a significant increase in credit card debt among its citizens.

Nearly half of American credit card holders are struggling to pay off their balances, enduring the financial aftermath of persistent inflation over the past two years. This situation has led to an alarming increase in the number of people who are carrying credit card debt from month to month.

Bankrate's study highlights that the current financial scenario, fueled by inflation, has compelled many households to rely on credit cards for daily expenses. This reliance has resulted in a 40% surge in credit card balances since 2021, as noted by the Federal Reserve Bank of New York. The average interest rate for revolving credit is alarmingly high, standing at 22.77%. Despite the Federal Reserve's efforts to stabilize the situation, the impact of high interest rates continues to burden American households.

To combat this growing financial crisis, experts like Ted Rossman from Bankrate suggest various measures. These include opting for 0% balance transfer cards, using personal loans with lower interest rates, and seeking advice from accredited financial counselors. The article emphasizes the importance of tackling credit card debt promptly to avoid the steep interest costs that accumulate over time.

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