Rising Living Costs Push More Americans Into Severe Debt

According to Jin10, CBS cited a recent analysis by the nonpartisan Urban Institute showing that about 24% of U.S. residents with credit records were behind on medical bills, student loans, auto loans, or retail loans. The median debt was $2,913. In communities of color, the share reached 30%, and the median amount in collections was $3,009. Urban Institute senior fellow Breno Braga said rising living costs were making it harder for people to pay for basic expenses. He added that this reflected Americans’ current financial condition. The Federal Reserve’s rate hikes this year to curb inflation have also made debt repayment more difficult. According to the latest data from the Federal Reserve Bank of New York, total consumer credit card debt has reached a record $1.29 trillion, up nearly 70% from five years ago.