Americans have been financially suffering under the Biden-Harris Administration for nearly four years-- and their credit card debt will continue to rise unless former President Donald Trump takes office.
A Bankrate/YouGov survey found that two in five, or 37 percent, credit card holders have either maxed out or come scary close to maxing out under President Joe Biden and Vice President Kamala Harris’ term— a 20 percent increase from the Trump Administration.
Bankrate explained that, whether rich or poor, every American feels the effects of Biden and Harris’ damaging economic policies, which have caused one of the worst inflation rates in the U.S. in modern history. Under the Biden-Harris Administration, Americans pay at least 20 percent more to cover the cost of basic necessities, including gas and groceries, with those costs increasing. If elected, Harris plans to let Trump’s tax cuts expire, raising taxes on all Americans by $7 trillion.
“With limited options to absorb those higher costs, many low-income Americans have had no choice but to take on debt to afford costlier essentials — at a time when credit card rates are near record highs,” Bankrate analyst Sarah Foster stated.
According to the New York Fed’s Household Debt and Credit Report, credit card debt hit a new record of $1.14 trillion in the second quarter of this year, with the average credit card utilization rate being 21.3 percent in August—a historic norm since 2011. In addition, the report found that credit card balances have risen by $372 billion since the first quarter of 2021— $215 billion higher than what they were under Trump in 2019.
With Biden and Harris in office, wages and benefits have fallen 3.4 percent, and for 42 consecutive months, inflation has been above the Federal Reserve’s two percent target. Interest rates have also been the highest in 23 years, and the monthly mortgage payment for a median-priced new home is 89 percent higher than when Biden and Harris took office in 2021.
If Harris is elected, the report painted a grim future for America’s financial health. Credit card balances will also increase as long as interest rates, inflation, and myriad other economic factors continue to climb to historic levels.