New Report Reveals Soaring Credit Card Debt Amidst Economic Strain

As the economic pressures continue to mount under the Biden administration’s policies, a recent report from Scholaroo paints a sobering picture of the financial struggles faced by American households.

The national average for credit card debt has skyrocketed to $6,555, with some states like New Jersey seeing an average debt of $8,155 per credit card—a staggering 24% above the national average.

Bruce McClary, senior vice president at the National Foundation for Credit Counseling (NFCC), attributes this alarming trend to the rising costs of living that are outpacing many Americans’ budgets. “Things are so much more expensive than they were three years ago,” McClary told The Epoch Times.

“Many people don’t have the money in their budgets for these added expenses and so they’re using credit cards and making minimum payments each month.”

The NFCC’s own Harris poll echoes these concerns, revealing that nearly a third of Americans are barely getting by financially, while 62% fear government instability will further jeopardize their finances in the coming year.

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The poll also found that 31% of Americans struggle to pay all their bills on time, and only 42% maintain a budget to track their spending.

Single individuals, renters, parents of minor children, and those with incomes under $50,000 are among the hardest hit. “Today’s higher rents may also be responsible for this credit card debt situation,” McClary explained.

“Most are paying way more than the recommended percent of their income toward rent, so now they’re faced with managing the rest of their expenses like groceries, utilities, gas, medical bills, and more.”

The skyrocketing housing costs have already priced many out of the market entirely.

As McClary pointed out, “Ten years ago, Seattle was one of those cities considered to be affordable, but there’s been such a tremendous increase in rents there that many people are no longer able to afford buying or even renting there.”

Despite these challenges, America’s appetite for credit cards shows no signs of abating.

The Scholaroo report indicates that in the past year alone, 45.5% of the population opened at least one new credit card account, amounting to a staggering 542.6 million new accounts by the end of 2023.

The Federal Trade Commission and NFCC offer advice for those struggling to make minimum payments, such as negotiating modified payment plans with creditors and seeking help to regain control of unmanageable debt.

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However, as long as economic policies continue to strain the average American family, the cycle of mounting credit card debt threatens to trap more households in a quagmire of financial insecurity.