Credit: Envato Elements
The National Credit Card Debt Is Crazy High
Using a credit card used to feel kind of harmless. You get what you need now and worry about the bill later. But now that “later” has arrived for a lot of Americans, it’s not looking so pretty.
Right now, credit card debt in the US has hit a record high of over 1.2 trillion dollars. That’s a serious number and a sign that many people are struggling just to cover daily expenses. With average interest rates sitting around 21.9 percent, even small balances can blow up fast.
So what’s behind this spike? It’s a mix of things. Prices are up across the board thanks to inflation. Groceries, rent, gas, even coffee—it all costs more. But wages haven’t kept up. So people turn to their credit cards to make ends meet. Even though balances dipped a little earlier this year, they’re still way higher than before.
There’s also the issue of late payments. Over 4 percent of credit card balances are now past due. And around 12.3 percent of users are more than 90 days late paying them back. That’s the highest rate in over 10 years. Lower-income communities are being hit especially hard, with nearly one in four people behind on their credit cards.
Why does this matter to you? Well, if you’re carrying a balance month to month, you’re not alone. But the longer it stays there, the more interest piles on. And if you miss payments, it affects your credit score. That can make it harder to rent an apartment, get a loan, or even land certain jobs.
It’s not just about individuals either. When people stop spending because of debt, it slows down the economy. That can lead to job losses and more financial stress for everyone.
So what can you do about it? A few smart moves can help. Start with paying off cards that have the highest interest rates. If you can, look into balance transfer offers with low intro rates. Set up autopay for at least the minimum payment so you never miss it. Cut back on little extras for a while and use that money to chip away at your balance. And don’t be shy about calling your credit card company to ask for a lower rate. They say no more often than yes, but it’s worth a try.
Having credit card debt doesn’t mean you’ve done anything wrong. A lot of people are just doing their best in a tough economy. But letting that debt build up can make things harder down the road. Take small steps now and you’ll feel the difference faster than you think.
