As 2025 begins, many Americans find themselves grappling with increasing credit card debt, a trend that has worsened since the previous year. According to a recent report by Bankrate, nearly half of credit card holders—48%—are now carrying debt from month to month, a notable rise from 44% at the start of 2024. Among those in debt, over half have been struggling with their balances for at least a year. The primary reasons cited for this financial burden include unexpected expenses, such as medical bills and home repairs, alongside rising daily costs and overspending. The impact of high inflation and interest rates has compounded these challenges, and while the worst may be over, the lingering effects are significant. Currently, the average credit card balance per consumer has reached $6,380, with projections indicating that paying off this amount could take over 18 years if only minimum payments are made, ultimately costing consumers thousands in interest.
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