Consumer spending has remained remarkably resilient in the face of persistent inflation — but it has come at a cost.
To keep up with higher prices, Americans racked up more credit card debt than ever this year. Not only are balances higher, 47% of cardholders are carrying debt from month to month, creating a cycle that’s particularly hard to break.
Now, 39% of adults said credit card debt is “their biggest threat to building wealth,” according to a new Edelman Financial Engines report. Even among wealthy respondents, or those between the ages of 45 and 70 with household assets of up to $3 million, 32% said the same.
Collectively, Americans now owe a record-breaking $1.08 trillion on their credit cards, according to a November report from the Federal Reserve Bank of New York.
Related: How to Dig Your Way Out of Debt
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Bautis Financial Advisor Commentary: December 5, 2023