AMERICANS ARE DROWNING IN DEBT

AMERICANS ARE DROWNING IN DEBT

Written by Peter Boykin on January 19, 2023

AMERICANS ARE DROWNING IN DEBT

Shared By Peter Boykin – American Political Commentator / Citizen Journalist

AMERICANS ARE DROWNING IN DEBT

An ominous new report details how the rising cost of living [thanks Joe Biden] has led to an emerging crisis of household debt.

Americans currently hold more than $16.5 trillion dollars, a 7.5% increase from last year.

Household debt is at a record-high $165,000 per household.

Personal savings rate [the % of your income you save] crashed to 2.3%, just shy of the all-time-low 2.1%.

What’s causing the problem?

Even though inflation has come down a bit, it’s still at out-of-control levels above 6% – leading to a higher cost of living. In the meantime, wages have not kept up with inflation, so Americans are technically making less than they were a year ago.

Since 2020 the median income has gone up 7% but costs of living have gone up 16%.

This leads to them having to either dip into savings or take on debt. [hence the numbers above]

Credit card debt:

In order to make ends meet, many Americans are racking up credit card debt.

49% of Americans say they rely on their credit cards for living expenses.

Average household credit card debt hit $7,500, up 28% from the previous year.

Overall, during the Covid pandemic, Americans were able to put money into savings due to their inability to travel and go out to eat + government stimulus checks. That’s the only reason they were able to muscle through 2022’s inflation. Now we enter 2023, savings are depleted, while inflation is still persistent. It’s a recipe for economic disaster.

[Source: NerdWallet, Daily Wire]

https://www.nerdwallet.com/blog/average-credit-card-debt-household

https://podcasts.apple.com/us/podcast/record-debt-1-17-23/id1576594336?i=1000594888042

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