Credit Card Debt Surges to Record High as Americans Struggle Because of Biden / Harris Policies

Americans are drowning in credit card debt, with balances hitting an all-time high of $1.14 trillion, according to a recent Federal Reserve Bank of New York report. This staggering figure paints a grim picture of the financial health of many households, especially as inflation continues to erode purchasing power.

The second quarter of 2024 saw credit card balances jump by $27 billion, a 5.8% increase from the previous year. This surge isn’t just a number on a page – it represents millions of Americans struggling to make ends meet in an increasingly challenging economic landscape.

Young adults are bearing the brunt of this crisis. Those between 18 and 39 are falling behind on payments at alarming rates. These individuals, many of whom are renters, lack the financial cushion that homeownership can provide.

As Brett House, an economics professor at Columbia Business School, points out, “homeownership has been one of the greatest tools of wealth creation” in recent years. Those priced out of the housing market are finding it harder to build financial security.

The situation is particularly dire for millennials. Many entered the job market during the Great Recession, facing long-term earnings challenges that continue to haunt them. Now, they’re faced with sky-high inflation and stagnant wages, forcing them to rely on credit cards just to cover basic expenses.

An Achieve survey reveals a stark reality: 57% of consumers are using credit cards to make ends meet. Even more troubling, 36% report difficulty paying recurring debts on time. For those who’ve missed payments, job loss or reduced income are often to blame.

TRENDING: As the World Teeters on the Brink of WWIII and Economic Collapse Biden / Harris Declare War on…Plastic Cutlery

Ted Rossman, a senior industry analyst at Bankrate, summarizes the situation bluntly: “High inflation and high interest rates have eroded Americans’ savings and more people are carrying more debt for longer periods of time.”

Adding insult to injury, credit card interest rates have skyrocketed. The Federal Reserve’s efforts to combat inflation through interest rate hikes have pushed the average credit card APR above 20% – a near-record high. For lower-income households already stretched thin by rising prices, this creates a perfect storm of financial hardship.

To put this in perspective, Rossman offers a sobering calculation. With a 20% APR, paying only the minimum on an average credit card balance of $6,218 would take 18 years to clear and cost over $9,300 in interest alone.

The astronomical rise in credit card debt is more than just a statistic – it’s a glaring indicator of a troubled economy. As inflation continues to outpace wage growth, more Americans are turning to credit cards as a lifeline, only to find themselves trapped in a cycle of debt that seems impossible to escape.

READ NEXT: Former Green Energy Giant and Left Wing Darling Files For Bankruptcy, Will Wind Down Operations

The record-breaking credit card debt isn’t just a number – it’s a cry for help from millions of struggling households across the nation.