The latest Federal Reserve report reveals a surge in household debt, with credit card balances hitting a record high of $1.21 trillion. Rising interest rates and inflation are compounding the issue, making it increasingly difficult for Americans to manage their finances. This article explores strategies to tackle credit card debt, including debt consolidation, settlement, and management plans.
Americans are sinking deeper into debt, and the numbers prove it. According to the latest Quarterly Report on Household Debt and Credit from the Federal Reserve, released this week, the total household debt nationwide surged by $93 billion in the fourth quarter of 2024, bringing the overall total to a staggering $18.04 trillion. Credit card balances alone jumped by $45 billion from the previous quarter, hitting a record high of $1.21 trillion by the end of December.
However, it's crucial to be mindful of balance transfer fees and make sure you have a plan to pay off the balance before the introductory rate expires, or you could end up paying just as much, or more, interest when the regular APR kicks in.Find out how to start tackling your debt today.Debt settlementFor those who are significantly behind on payments, debt settlement, also known as debt forgiveness, may be an option.
CREDIT CARD DEBT HOUSEHOLD DEBT DEBT MANAGEMENT INFLATION INTEREST RATES
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