Part 4/10:
Credit card debt has become a hallmark of American life, often associated with convenience and flexibility. As of Q1 2025, Americans owed approximately $1.88 trillion on credit cards—a staggering increase of over 50% since the lows of 2021 during the pandemic. The average cardholder carries a balance of more than $7,300.
Notably, many consumers apply credit cards to basic necessities like groceries and utilities rather than luxuries, indicating a grim financial reality. Retail credit cards, which can sport interest rates as high as 36%, have also become problematic, often leading users down a path toward bankruptcy due to crippling financial burdens.