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THANKS CREDIT CARD DEBT! Why You'll Always Live Paycheck To Paycheck
Now, I’d be remiss if I didn’t talk about the affect our growing credit card problem has on the cycle of living paycheck to paycheck, so let’s dive into that for a little bit.

The Federal Reserve Bank of New York reports that U.S. consumer credit card debt has reached an all-time high of $1.03 trillion as of the second quarter of 2023.

Unfortunately, many Americans are using credit cards as a crutch rather than a financial tool.

The average American has four credit cards and often swipes without fully considering the consequences of carrying high-interest credit card debt at variable rates.

Even as consumers adapt their spending habits to cope with the challenges of the current economic environment, a financial backlog remains.

On average, consumers carry outstanding credit card balances equivalent to 35% of their available savings.

However, for those living paycheck to paycheck, this ratio is even more concerning.

Consumers without bill payment issues have credit card balances averaging 62% of their available savings.

In contrast, those struggling to pay their monthly bills carry balances equivalent to a whopping 157% of their available savings.

This means they would still have a balance even if they emptied their savings accounts, underscoring the urgency of addressing this financial challenge.

In conclusion, the confluence of rising inflation, mortgage rates exceeding 7%, and credit card APRs surpassing 20% has placed an increasing number of Americans on a perilous path of living paycheck to paycheck.

These challenges affect individuals across various income levels, making it crucial for everyone to reassess their financial strategies and prioritize building a more secure financial future.

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#creditcarddebt #paychecktopaycheck #financialfreedom
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