Why Americans Are Having An Unusual Struggle Financially in 2024

June 10, 2024 By: Anna C. - CreditMonarch Online Writer0 comments

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More Americans may be struggling to make ends meet this year. The Bureau of Labor Statistics has reported that inflation has been on the rise in 2024. A majority of Americans are saying they are living paycheck to paycheck. Many households are under pressure due to higher prices and higher interest rates, and prices are still going up, although at a slower pace than they had been.

Saving and investing can be difficult or impossible when you live paycheck to paycheck. In the event of an emergency or loss of income, this increases your vulnerability. In particular, young people have had to make financial sacrifices to handle rising rents, escalating student loan balances, and more expensive auto loan payments. The primary reason why people live paycheck to paycheck is due to high monthly expenses, which include rent or mortgage, insurance, utilities, credit card interest rates and more.

Retirement security is also a major concern, with over half not saving and 62% feeling unprepared. A significant number of low and middle income households are using their savings to pay monthly expenses, which isn’t a good sign for their spending. Credit card debt is already at a record high and delinquencies are at the highest level since 2011.

Credit card debt can be easy to fall into, and it can be difficult to get out of it. Experiencing financial strain and worry can be overwhelming, but there are ways to improve your finances and make progress towards debt repayment. Make a plan to pay more than the monthly payment that is required by your credit card. You won’t be able to use another credit card to do this unless you do a balance transfer.

If you have a large balance, prioritize paying it off as soon as possible. The more time you spend on paying off a balance, the more money it will cost you. Here at CreditMonarch, we believe these are the best balance transfer credit cards in helping you pay off your credit card debt if you are struggling financially.

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