Part 6/8:
A stark indicator of the current financial crisis is the rampant rise of credit card debt in the United States. With total credit card debt nearing $1.17 trillion, over 40% of Americans rely on credit cards to manage their monthly expenses.
High-interest rates—often between 25% and 30%—compound the struggles faced by consumers. Even diligent payments may not be enough to significantly reduce overall debt, leading to a vicious cycle where reliance on credit continues as financial pressures mount.
Decreasing Savings Rates
Finally, the decline in savings rates has exacerbated financial hardships for many. Since 2019, household savings have plummeted by 32.5%, reflecting a scenario where individuals cannot simply dip into savings to cover unexpected expenses or emergencies.