US household debt reaches $18.8 trillion amid rising costs

U.S. household debt has reached approximately $18.8 trillion, according to data from the Federal Reserve Bank of New York. This total includes mortgages, auto loans, student loans, and credit card debt, with mortgages accounting for the largest portion.

Credit card debt specifically has risen to around $1.26 trillion, averaging roughly $6,600 per credit card holder. Ted Rossman of the non-profit organization Money Management International noted that many individuals seek assistance for massive credit card debts, averaging around $40,000. Unlike in Europe, credit cards in the U.S. are frequently used to cover essential daily living expenses.

Rising inflation and the increasing cost of living are contributing to the struggle, as many Americans find it difficult to afford basic products and services. While sales in some sectors are declining, discount retailers have reported record revenues as consumers adjust to economic pressures.