It’s no secret that Americans are struggling financially. With rising costs of living, stagnant wages, and a lack of job security, many families are finding it difficult to get ahead. Unfortunately, this financial strain is leading to some concerning trends, including a decrease in savings and an increase in credit card debt.
The latest data from the Bureau of Economic Analysis shows that Americans are saving less and less each year. In 2018, the personal savings rate in the U.S. was just 6.8%, the lowest it has been since the Great Recession. This means that most Americans are not putting away money for a rainy day, and are instead relying on credit cards to make ends meet.
The reliance on credit cards has resulted in a dramatic increase in consumer debt. According to the Federal Reserve Bank of New York, Americans now owe nearly $1 trillion in credit card debt. This is a staggering amount, and it’s having a serious impact on people’s finances.
The burden of credit card debt can be particularly difficult for those who are already struggling financially. High interest rates and late fees can quickly add up and make it difficult to pay off the balance. This can lead to a cycle of debt, where people are unable to pay off their debt and are forced to take out more loans or use more credit cards to make ends meet.
It’s clear that Americans need to start saving more and using credit cards less. Building an emergency fund is a great way to prepare for unexpected expenses and reduce the need to rely on credit cards. Additionally, it’s important to pay off credit card debt as quickly as possible to avoid costly interest charges.
Overall, Americans need to take a hard look at their finances and make sure they are taking steps to save money and reduce their reliance on credit cards. Doing so can help them avoid the burden of debt and ensure that they are in a better financial position in the future.