- ORIGINAL NEWS
Credit card debt hits a ‘staggering’ $1.13 trillion. Here’s why so many Americans are under pressure
- SUMMARY
Americans now owe 1.13 trillion dollars in credit card debt, according to a report from the Federal Reserve Bank of New York.
Increased prices have made consumers use savings and credit cards to afford necessities.
Young adults, who already contend with high student loan debt, are increasingly falling behind on credit card payments.
Many feel overwhelmed by higher food, gas, and housing costs and struggle to avoid persistent debt.
The average annual percentage rate is now over 20% due to the Federal Reserve’s interest rate hikes.
Consumers may consider asking their card issuer for a lower rate, consolidating debt with a lower-interest loan, or using a balance transfer credit card.
To optimize credit card use, compare offers, pay balances promptly, and avoid late payments.
- NEWS SENTIMENT CHECK
- Overall sentiment:
negative
Positive
“Consumers regularly compare credit card offers, pay as much of their balance as they can as soon as they can and avoid paying their bill late to optimize the benefits of their credit cards.”
Negative
“Collectively, Americans owe $1.13 trillion on their credit cards, according to a new report from the Federal Reserve Bank of New York.”
“Credit card delinquency rates jumped among younger millennials, or borrowers between the ages of 30 and 39, who are burdened by high levels of student loan debt.”