Credit card debt in the United States is a nuanced issue. While 45% of American households carry credit card debt with a median balance of $2,700, the situation is not as dire as one might assume given the high interest rates, which can soar up to 28%. Credit card delinquencies have increased but are not yet alarming, and bankruptcies are lower than in previous years. Interestingly, the median household credit card balance has decreased over time, suggesting improvements in financial management. The article highlights the dichotomy between those who use credit cards for rewards and pay off their balances monthly, and those who carry a balance, incurring high costs. It emphasizes the importance of paying off credit card balances each month and the financial strain that not doing so can cause, considering the significant interest charges that can accumulate over time.
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