Americans are taking on historic amounts of debt. According to Federal Reserve figures issued Friday, consumer debt levels increased by $52.4 billion in March 2022, a 14 percent annual rise.
For those who don’t make the minimum monthly payment, paying off credit card debt is likely to get even more difficult: The Federal Reserve announced a half-point rate increase few days ago as part of a series of steps to combat rising inflation.
That means interest rates on everything from credit cards to vehicle loans will climb, putting even more strain on household budgets.
Interest Rate Raising
The federal reserve is raising interest rates by half a percentage point to combat inflation, the largest increase in the United States since 2000. People with government loans and credit cards will be affected.
