American credit card debt is at an all-time high — hitting $1.023 trillion. But the current debt apparently isn’t a huge threat to the economy like it was in 2008. Since incomes are much higher, U.S. consumer borrowing increased by 8.8%, showing signs that America trusts the economy more. But that doesn’t mean it’s not a problem — especially for families that don’t make a lot of money.
“People should make 2018 the year they focus on knocking down their credit card debt,” Matt Schultz, CreditCards.com Senior Industry Analyst, told USA Today.
As the federal reserve increases interest rates, credit card debt could go up even more, so it’s better to pay off your debt now and take a careful look at your cash flow.