Americans Drowning in Credit Card Debt: A Dwight Schrute Perspective

The Mounting Credit Card Debt Crisis

Attention fellow Americans! It has come to my attention that we are in the midst of a credit card debt crisis. According to the Federal Reserve Bank of New York our outstanding credit card debt has reached a staggering $1.08 trillion making history with a 10% jump from last year. I'm not one to panic but this is concerning to say the least.

Spending Inflation and Delinquencies

You might be wondering why this debt mountain is growing. Well it seems that consumers just can't resist the allure of spending. As my colleague Charlie Wise from TransUnion pointed out even though the inflation rate has gone down prices are not following suit. They are still rising! Meanwhile households are showing signs of strain with more people carrying debt from month to month or falling behind on payments. Delinquency rates are on the rise my friends.

The Balance Toting Dilemma

Now here comes the fork in the road. If you're smart like me you pay off your credit card bill in full every month and enjoy the rewards of cash back and travel perks without paying interest. But if you're carrying a balance oh boy you're in trouble. Credit cards are one of the most expensive ways to borrow money with average interest rates soaring to a record high 20.74%. Yikes! If you only make minimum payments on that average balance get ready to be in debt for more than 17 years and pay over $9,000 in interest. Not exactly a thrilling prospect is it?

Blame it on the Millennials

Ah the millennials. They claim to have it all figured out with their avocado toast and Instagram filters but it turns out they're leaning heavily on credit cards too. According to TransUnion many of these youngsters burdened by high levels of student loan debt and the housing affordability crisis see credit cards as their lifelines. It's tough out there for them I understand. If you can't afford to buy a beet farm of your own life can be pretty dreary.

Escape the Debt Trap

But fear not my friends! Dwight Schrute is here with some tips on how to tackle that menacing credit card debt. One option is to sign up for a 0% balance transfer credit card. Yes they exist! These cards give you the chance to consolidate your high cost debt onto a new card that won't charge interest for up to 21 months. It's like finding a golden beet in a sea of regular beets! Another option is to refinance your debt into a lower interest personal loan. And if all else fails don't be afraid to ask your credit card issuer for a lower annual percentage rate. In fact 76% of people who asked for a lower interest rate in the past year actually got one. It never hurts to ask unless your name is Toby.

The Bottom Line

Let's face it my fellow Americans. Credit card debt is a slippery slope and if we're not careful it can consume us like a swarm of bees. We must be vigilant and responsible with our finances or else we may find ourselves in an even stickier situation. Stay beet strong and keep your debt low. That's the Dwight Schrute way!