Credit card debt has hit an all-time high, reaching $1 trillion for the first time on record. This signals many important things about the current financial status of many American families.
More families are becoming reliant on credit cards as inflation, interest rates on credit cards and delinquencies increase. Concerns are compounded for families that will have to pay back student loans once forbearance is waived.
Once student loan payments start up again, the typical borrower may be looking at a $203 monthly payment, according to Experian. Younger folks have the most outstanding loan debt of any generation.
Experts suggest getting ahead of student loan payments to mitigate financial challenges. Other suggestions from experts include considering a balance transfer credit card, consolidating debt with a personal loan or borrowing money from family and friends.
Ultimately, debt is mounting for many families. Plan diligently and identify ways to save and reduce spending to maintain financial health.