(Patriot.Buzz) – In a testament to the real state of the economy, Americans are drowning in debt even as record-breaking holiday spending hits almost $1 trillion.
This increase in consumer spending has been driven by misguided economic policies and rampant inflation, which has left many families struggling to make ends meet.
The financial strain is particularly severe for millennials, who increasingly rely on credit cards amid a cost-of-living crisis created by the Biden administration.
The National Retail Federation (NRF) projects that U.S. holiday spending will reach an astronomical $989 billion in 2024.
This staggering figure is no surprise, given the sky-high prices Americans face due to unchecked inflation.
Many hardworking citizens felt forced to maintain holiday traditions despite rising costs, resulting in a never-before-seen rise in credit card debt.
Over one-third of Americans took on debt this holiday season, with an average balance of $1,181.
The situation is particularly dire for younger Americans, who bear the brunt of this economic mismanagement.
“Inflation is still a big deal in this country, and it’s having a huge impact on people’s finances, including their holiday spending,” said financial expert Matt Schulz.
Credit card interest rates remain above 20%, trapping hardworking Americans in a cycle of debt that will be increasingly difficult to escape.
Even before the holiday season, credit card debt in the U.S. was at an all-time high, with balances 8.1% higher year-over-year.
“No one should be surprised that so many Americans took on debt this holiday season. Prices are still really high and that means that lots of Americans simply didn’t have any choice,” Schulz added.
As the nation enters the new year, the current path of unchecked spending and mounting debt is unsustainable and threatens the financial security of hardworking Americans.
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