US Credit Card Debt on the Rise: Challenges for Low-Income Households
US credit card debt continues to climb, presenting challenges for many, especially the lowest earners. In a recent report from the New York Fed, total credit card balances have surged 5.8% year-over-year, now totaling $1.14 trillion.
The Impact of Rising Costs
For low-income households, housing and other living expenses exacerbate the challenges of rising debt levels. As costs remain persistently high, many are finding it increasingly difficult to manage their credit card payments.
Delinquency Rates Increasing
- Equifax data through June indicates a significant rise in credit card delinquency rates.
- This trend poses a risk not only to individual finances but also to the broader economy.
- Increased delinquency rates raise concerns about potential impacts on credit scores.
Strategies for Managing Debt
In light of these developments, it’s essential for individuals to adopt effective debt management strategies. Some practical steps include creating a budget, prioritizing high-interest debts, and seeking financial counseling when necessary.
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This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.