With the increasing cost of living, many economic experts expressed their concern about increasing the credit card debt burden on the average American. Experts believe that this might be hard for those people who pay through cheques to pay online.
Credit Card debt Crosses over 1 trillion
As per the report crafted by the Federal Reserve of New York, the credit and debit card debt increased by $ 45 billion and touched $1.03 Trillion.
Credit Card Debt to Hit US Economy Hard
The experts point out that most people are using credit cards to pay necessary bills such as Gas and Food items. Increasing debit card means people in general are now under a heavy burden for buying all the necessary items and this indicates they are under economic stress.
More People Under Credit Card Debt
As per the report by Bankrate.com, almost 50 percent of people carry credit debt from one month to another, a year ago this was only 39 percent. It has been found that most people fail to pay their dues before the deadline.
Federal Reserve enhances Interest Rate
Federal Reserve increased the interest rate last Wednesday to control the inflation rate but credit card users pay more interest rates on their credit card debts. This worsens the condition as this forces people to do two-three jobs at the same time. Resulting in some people declaring bankruptcy.
Average Credit card debt is over $5,700
Trans Union has claimed that the national average for credit cards is over $5700 but they must pay nearly 24% of the interest on the amount. It is also important due to the average debt burden it reduces growth and the average working class finds it difficult to meet their ends.
Use Credit cards wisely!!
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