It is official: U.S. credit card debt has surpassed $1 trillion, setting an all-time record.
According to the latest WalletHub study, using Federal Reserve data, American consumers tacked on $92.2 billion in credit card last year, helping increase the outstanding balances top $1 trillion.
The personal finance website also found that the average U.S. household owes $8,600, $138 more than at the peak of the financial crisis. But what’s interesting is that, despite the mounting debt levels, most Americans (88 percent) think their personal finances are much better than the federal government’s.
This is interesting because how Americans got into debt can be likened to Washington. For instance, more than one-third (35 percent) say going on a vacation is worth getting into debt for, and 10 percent aren’t even sure how they got into debt in the first place. A politician would likely say the same thing: they are stimulating the economy!
It was further revealed that 70 percent of respondents think the U.S. is about two years away from the next recession.
When the next recession strikes, consumers and governments will be out of bullets.
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