If Your Debt Is Ballooning, There Are Steps You Can Take

Americans are facing increasing challenges with credit card debt and other loans, as well as higher costs for basic banking services. Interest and fees on credit card accounts with balances rose approximately 25% in 2023 compared to the previous year. A nonprofit organization focused on financial stability found that 42% of households with credit card debt considered their overall debt level unmanageable. More borrowers are falling behind on credit card payments, particularly those who have reached their spending limits. Making payments on various loans, including car and student loans, has also become more difficult for consumers. A significant portion of interest and fees associated with credit products come from financially vulnerable individuals who struggle with bill payments, saving for emergencies, and managing debt.