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The average American household now spends about $644 a month merely to cover essential expenses such as food, housing, and transportation—this translates to over $77,000 annually before tax deductions. Unfortunately, wages have stagnated, further straining the budgets of families across the country.
When asked about their financial situations, one-third of Americans admitted to having more credit cards than savings, illustrating just how widespread reliance on credit has become. The average American carries more than $8,000 in credit card debt, and for many, this means paying far more toward interest than toward reducing the principal amount owed.