Saturday,
December 3, 2022
Top Story
The week in review
• US stocks rose earlier in the week as optimism built that the Federal Reserve could take a dovish turn in 2023. This followed comments from Fed Chair Jerome Powell, who hinted the central bank may be eyeing a smaller rate hike at this month’s meeting.
• The October PCE, which is the Fed’s preferred measure of inflation, came in 0.2% higher month-over-month. That’s cooler than expected and points to the Fed’s aggressive efforts aimed at reining in price increases. At large, consumer spending held steady in October as well.
For more economic news, visit On the Money — SoFi’s one-stop-shop for news, trends, and tips!
Due to inflation, Americans are carrying more credit card debt than ever
With inflation at its highest pace in years, more and more Americans are struggling to keep up — and are turning to credit cards to get by.
Credit card balances have risen more than 15% for the July-to-September period — that’s the largest quarterly increase since 2007.
It’s not necessarily a problem to have a balance on your credit card — as long as you pay it off every billing cycle. In fact, using credit cards for rewards or to build credit can be a financially healthy choice. And getting into the habit of paying off your statement balance in full by the due date is important.
But if you start to carry a credit card balance, you’re not just paying for your purchases, you’re paying hefty interest charges on top of what you’ve spent. The debt can quickly pile up, even if you’re making the required minimum payments.
While it can seem like a steep, uphill climb, getting out of credit card debt is possible. It might take some serious planning and commitment, but with the right tools, it’s an achievable goal. Here are five steps to take to pay down credit card debt amid inflation and rising interest rates.
