Credit card debt has increased 16% just over last month alone, so Americans now hold around $890 billion in credit card debt – more debt than at any point during our history. The number one factor is inflation as people aren't just using their credit cards for things they want, but also essential goods like gas and groceries. Over 200 million new cards have been issued this year. That's scary!
The hot housing market has played a role in overall debt because people are buying more house for their money with interest rates so low. I don't know when the housing market will burst but I don't doubt it's coming. My home has gone up in value around 40% over the last two years and although it sounds good, I know the other shoe will inevitably drop.
And lastly, keep in mind that the COVID-era moratoriums that prevented repossessions and foreclosures during the pandemic are expiring, which could start a chain reaction on our economy as people inevitably start defaulting on their payments.
Things are going to get ugly sooner than later. My advice, live below your means. Hold off on any wants that are expensive and instead focus on your needs. Pay down your debt so you're not a slave to the system. Read or listen to a book by Dave Ramsey. He is the master of how to manage money. He even has material for young people, so they'll get a good head start on how to use their money more wisely.