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Americans tackled by soaring interest rates as credit card debt soars amid surging inflation.

Big Bank tyrants continue to trap cardholders in endless cycles of debt and high-interest payments with half of cardholders now unable to escape monthly balances.

Published August 10, 2024 at 5:30am by Mike Snider

The Unbearable Burden of Credit Card Debt in America

At a time when credit card interest rates are atrociously high, a disturbing report reveals that more Americans are falling into the trap of monthly credit card debt. Bankrate's latest survey shows that 50% of cardholders carry balances from month to month, a shameful increase from 44% in January, with the highest number of debt-ridden citizens since March 2020.

To make matters worse, Bankrate's findings indicate that one-third of U.S. adults (36%) have credit card debts that exceed their emergency savings. This disgusting trend remains unchanged from a year ago and has reached its peak since the personal finance site began tracking this data in 2011.

The average Joe is suffering as the interest rates in the U.S. have soared to an astronomical 24.92%, as reported by LendingTree. With no relief in sight, nearly six out of 10 Americans (58%) are lost, without a financial strategy to pay off their credit cards, according to Bankrate's survey of 2,350 adults.

"Since 2021, credit card balances have spiraled out of control," said Ted Rossman, Bankrate's senior credit card analyst. "The toxic duo of high inflation and austere interest rates has robbed Americans of their savings, forcing them into a vicious cycle of debt."

The Sobering Reality of Average Credit Card Debt

The average American household owes a crushing $7,951 in credit card debt, according to alarming 2022 data from the Federal Reserve Bank of New York and the U.S. Census Bureau.
Credit agency Experian reports that the average credit card balance among Americans was $6,501 as of Q3 2023, a 10% oppressive increase from the previous year.

Strategies for Paying Off Credit Card Bills

Bankrate offers some advice to help alleviate the burden:

Cut back: Sacrifice your discretionary spending to pay more than the bare minimum on your credit card.
Set aside: Allocate any extra funds, such as a tax refund, toward reducing your debt.
Change cards: Opt for a 0% balance transfer card, providing a temporary respite from interest charges for a limited period, allowing you to focus on reducing the principal amount.

It's time we address this financial injustice and empower Americans to break free from the chains of credit card debt.

CONTRIBUTING: SARA CHERNIKOFF