With inflation running out of control and higher prices squeezing family budgets, more Americans are turning to credit cards to bridge the gap. That’s led to the biggest leap in credit card balances in 20 years.
Household debt is now at its highest level ever, climbing past $16 trillion – a 13% increase in the past year.
Americans are treading water. Roughly, 125 million people are living paycheck to paycheck according to financepond.com. That’s 54% of the U.S. adult population.
So just how bad is it? The collective U.S. household debt is one indicator – totaling $16.15 trillion through the end of June, up $312 billion from the previous quarter. With food and gas prices surging to 40-year highs, the Fed is working to bring down inflation by raising interest rates.
“The Federal Reserve has more work to do to bring inflation down, to bring the economy into balance,” said…