Part 2/10:
The current debt crisis in America is alarming. As of 2024, total credit card debt has surpassed an astounding $1.1 trillion, and the average balance carried by Americans exceeds $6,000. Interest rates have escalated drastically, with many credit cards charging upwards of 20-30% APR. Yet, consumers continue to swipe without a second thought. Behavioral economists have described this phenomenon as the "pain of paying." When using cash, consumers are more acutely aware of their spending, while credit card usage diminishes this perception, leading to greater impulsivity in purchases.