As the Biden administration continues to push their massive spending spree, it shouldn't come as a surprise that U.S. household debt has hit a new record high.
It all starts at the top, and according to the Federal Reserve Bank of New York, the U.S. household debt is now at $15.24 trillion! A new record that you probably won't hear much about from the White House.
"Consumers are taking on debt because they have to, their income is not keeping up with rising prices" said Jordan Goodman, America's money answers man, "When expenses rise faster than income, people use debt to make up the difference."
The extra Covid money is gone, and now people are turning back to credit cards. Food, gas, bills, education, mortgages and rent, everything is going up -except- wages. Goodman says he expects that trend to continue, especially as we hit the holidays.
"I think we're going to continue to go to all time record highs in debt" Goodman told KTRH, "The home mortgage market is still very hot, credit cards remain very available, so I think people are going to keep adding to their credit card debt. Student loans is probably the fastest growing of all debt out there, so all the major areas of debt continue to grow quite sharply."
As for Biden's 'Build Back Better'? Experts say it will actually make things worse.
"When Americans can get out, they spend and they go into debt" Goodman said, "And they've been doing that in a huge way."
Some advice? Goodman says if you are going to use a credit card, make sure you get the lowest interest rate possible. You can also check out his website https://moneyanswers.com/