America's Personal Finance Struggle

02-26-2025


With persistent inflation, rising interest rates, and increasing debt levels, managing personal finances has become more challenging than ever for many Americans. 

 

If you’re feeling the pressure, you’re not alone. Here’s a look at the current financial landscape and some strategies to help navigate it.

 

The Current Financial Landscape

  • Americans’ credit card debt has surpassed $1.17 trillion, with many households carrying balances they struggle to pay off. Credit card interest rates averaging 28.6% make it challenging to break free from revolving debt.
  • Nearly half of Americans saved less in 2024 than the year before, and one-third of households wouldn’t be able to cover a month’s worth of bills if they lost their income.
  • Housing, groceries, utilities, and medical expenses have made it increasingly difficult for many Americans to put money away for the future.
  • More people are turning to payday loans, "Buy Now, Pay Later" plans, and credit cards to cover expenses. However, some of these options come with predatory interest rates — payday loans, for example, can exceed 400% APR.
  • Despite these challenges, 44% of Americans expect to save more in 2025, especially younger generations who are optimistic about their financial futures.

 

Strategies to Consider in 2025

  • For those dealing with sky-high interest rates on debt:   Consider refinancing high-interest debt, low-interest personal loans, or credit card balance transfer offers. 
  • For those wondering how to pay off credit card debt:   Consider the avalanche method (paying off the highest interest debt first) or the snowball method (starting with the smallest debt for quick wins) to minimize debt. 
  • For those who want to start saving :   Aim to save at least three to six months’ worth of expenses in an emergency fund. Consider setting up automatic transfers. And remember: Small contributions to savings accounts can add up.

No matter your financial situation, having a plan can help reduce stress and set you up for success.