Americans pressured by ongoing credit card debt: NerdWallet

01/10/2024 02:37

A new report from NerdWallet revealed that one-third of Americans believe they will be in credit card debt indefinitely. NerdWallet Credit Card Expert and Writer Sara Rathner joins Yahoo Finance Live to discuss the steady rise in household debt. Rathner notes that credit card balances have climbed 16% over the past year while interest rates have spiked an average of 22%. "Incomes are just not keeping up with the cost of goods," she says, with the cost of consumer goods up 20% even as incomes rose only 12%. This widening gap leaves many Americans vulnerable to accumulating credit card debt they cannot easily pay off. "A lot of times credit card debt is imagined as the result of frivolous spending," Rathner tells Yahoo Finance, continuing: "but, we've actually found that many Americans take on debt just trying to afford the necessities." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Angel Smith.

Rathner notes that credit card balances have climbed 16% over the past year while interest rates have spiked an average of 22%. "Incomes are just not keeping up with the cost of goods," she says, with the cost of consumer goods up 20% even as incomes rose only 12%. This widening gap leaves many Americans vulnerable to accumulating credit card debt they cannot easily pay off.

"A lot of times credit card debt is imagined as the result of frivolous spending," Rathner tells Yahoo Finance, continuing: "but, we've actually found that many Americans take on debt just trying to afford the necessities."

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Angel Smith.