Here's Why 29 Million Credit Card-Carrying Americans Probably Aren't Happy Right Now
Whether you realize it or not, America runs on credit. Earlier this year, according to data from the Federal Reserve, the aggregate amount of credit card debt consumers held topped $1 trillion, joining student loan debt and auto loan debt atop the $1 trillion mark. At last check, aggregate credit card debt stood at $1.027 trillion, which is a fresh all-time high, surpassing the previous record set before the Great Recession.
It's not hard to understand why credit cards play such a vital role in the lives of everyday Americans. According to the St. Louis Federal Reserve's personal saving rate data from July, the average American is socking away just 3.5% of his or her income, which is well below the 10% to 15% that most financial advisors recommend workers save. It's also less than a third of what the average American was saving 50 years ago. This lack of savings means Americans have little choice but to turn to their plastic to save the day should an emergency arise.
Image source: Getty Images.
Source: Fool.com
