Credit card debt in US reaches new record

That's no secret. The pandemic and inflation have hit our wallets, and as a result, Americans are charging more to their credit cards. Billions more. But what does that mean for our economy? And what's the best way to get out of debt? Treleven Sarah Makowitz has the answers from experts. Pandemic restrictions have eased, but a lot of the inflated prices that came as a result have stuck around, pushing Americans to swipe, swipe and swipe again. All of this has led to a new record high of nearly $1 trillion in credit card debt nationwide. That's rising by over $60 billion in the last quarter of 2022.

But how did we get here? Economists and financial planners have some ideas. On the fourth quarter of last year, it finally surpassed the pre pandemic. Americans are paying more for everything, and they've tapped and in many cases now depleted their savings. They feel like they have no place to turn but credit card swiping the credit card to pay for life. So we know that our plastic is carrying more. But what does all this debt mean for our economy? Interest rates are rising and that that's going to affect business investment and consumer spending decisions. But so far, consumers still seem enthusiastic about spending and. And buying things and willing to run up their credit card debt. If you're someone battling this debt right now, eventually that Bill is going to come in. But Jen will says you might want to be careful before you open up another credit card for more spending.

The best advice I can give is never use a credit card to pay for a want. The average interest rate right now, we're told, is over 19%. Find those introductory offers, those 0% introductory offers where you can move balances for a short period of time. But don't do it unless you have a plan to snowball and really attack that debt. As for what's next, there's no guarantee, but Gen. Wealth advises you plan for what you can control. What matters most is not the economy, but your economy. And figuring out your budgets is more important than what's going on in 2023 in the US economy. And while we are seeing inflation begin to slow down, economists say the high prices aren't going anywhere anytime soon.

Reporting. I'm Sarah horback lowitz. Sarah, thank you now. Well, overall, FICO credit scores continue to trend up through 2021. According to the data company Experian, many scores in Southern states, including Arkansas, are worse than the national average..

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