00:00Are people spending money they already have from their savings accounts, or are they borrowing
00:05money to do it? During the pandemic, for example, people didn't need to borrow money because
00:09they were getting help from the government with all the stimulus. But now that the stimulus
00:12is gone, data shows people started to borrow more.
00:16But that trend is starting to reverse. At the end of 2022, the average household had
00:21nearly $10,000 in credit card debt. Analysts believe that nationwide credit card debt may
00:26soon reach $1 trillion, an all-time high. Putting everyday expenses on credit is so
00:32very dangerous because we know that as interest rates have been rising, so have
00:36rates on credit cards. So is the interest that you're paying on that money that you
00:40are indeed borrowing to pay for everyday expenses. That's right. And now is arguably
00:45the worst time to borrow on credit to buy your essentials, especially if you carry a
00:49balance when interest rates have reached an all-time high of 20%.
Comments