With increased inflation, usually comes increased interest rates. Those who can least afford it, particularly credit card borrowers and people with fixed incomes, are most vulnerable to these rate changes.
A recent Washington Post article mentioned that with all of the early pandemic CARES act incentives, coupled with the lack of dining out, entertainment, and travel opportunities, Americans saved more and spent less. In fact, in 2020, Americans reduced their credit card balances by $83 billion of credit card debt. With the economy back in full gear, and costs for basic necessities and rents rising, overall debt is increasing.
If credit cards are putting the squeeze on your ability to keep the roof over your head and put food on the table, feel free to contact us to discuss your options.