Financial Expert Bill Dendy explains why this is happening to a lot of Americans. "INFLATION. The trillion dollar level is a WARNING BELL to a lot of economists because it means a lot of this debt is being carried because so many Americans are finding it difficult to cope with the immense inflation of the last 2 years!" Dendy explains why this is happening to a lot of Americans. "Their ability to consume as much as they did in the past with the same income with higher costs puts them into credit card debt." He says for some it's just easier than buying generic, eating at home and saying no to past extravagances and let the interest on the interest keep mounting.
Credit Card Debt at an All Time High
Dendy says it's an easy trap to fall into. "Paring back their budgets, separating the 'needs' from the 'wants' and determining what's important --- it's just easier to put it on the card! Over the past few years, we have seen inflated prices increase over 20%. Some Americans have seen some type of raise in those years, but not the same as the 20% inflation."
He urges you to consult with a Certified Financial Planner to help you change your habits and continue to prepare for retirement.
The average credit card annual percentage rate, or APR, hit a new record of 20.33% last week.
photo:Getty
Credit Card Debt is at an all time high in the U.S. due to inflation.Photo: Getty Images