Within 2 years, the USA has become a country of people from record thrift to record debt

Within 2 years, the USA has become a country of people from record thrift to record debt

America has gone from record savings to record debt in just two years. It is a country of credit cards, according to public radio NPR.

For example, the millennial generation (born between 1980 and 1996) noted that debts increased by almost 30 percent. since before the pandemic and currently amount to approx. USD 3.8 trillion. Significantly, in 2021 the debt fell to an almost record low.

NPR quotes Jill Schlesinger, a CBS News business analyst and author of The Great Money Reset, who says Americans had plenty of savings back then.

“Stimulus checks, isolation and wage increases have left people in really strong financial shape. (…) But the year 2022 begins and inflation is not falling. Then we saw how many people lost those savings from the pandemic, left with nothing,” says Schlesinger.

In her opinion, the rising prices of basic items such as food, gasoline and clothing have become a real financial disaster for millions of Americans.

NPR gives the example of Stephanie Roth, 41, a mother of three little daughters, a medical assistant who is divorced. From a previously stable situation, she fell into debt. They soared on the credit card from a few, to now about 25,000. dollars.

“It’s overwhelming. (…) If I make only the minimum payments, I will be 300 years old when it will be repaid,” the woman assessed.

“The rate at which credit card debt in the US is growing is one of the fastest in history. Collectively, we owe nearly a trillion dollars on our credit cards, an all-time record. Credit card debt jumped over 11% in January alone. emphasizes American public radio.

He points out that millions of Americans have similar financial arrears, and it is increasingly difficult to obtain government assistance, e.g. free kindergarten or food allowances.

“I make enough money not to be poor enough to qualify for these services,” Roth explains, adding that it’s hard to imagine how poor she is.

From New York Andrzej Dobrowolski (PAP)

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