Credit card debt in the United States has reached an unprecedented high of $1.17 trillion, according to the latest report from the Federal Reserve Bank of New York. This staggering figure highlights a growing reliance on credit in the face of rising living costs—a challenge mirrored here in the UK.
Let’s delve into the debt crisis and explore how Incredible can help you regain control of your finances.
US Credit Card Debt: The Key Facts
In the third quarter of 2024, credit card balances in the US rose by $24 billion, representing an 8.1% increase compared to the same period last year. Although delinquency rates have slightly improved—falling from 9.1% to 8.8%—it’s clear that many households are struggling to manage their growing debt.
The average US credit card balance now stands at $6,329, up 4.8% year-on-year. With interest rates persistently above 20%, low-income households are particularly hard hit, as inflation and rising expenses leave little room for financial flexibility.
The UK Faces a Similar Challenge
Here in the UK, credit card debt is also on the rise. Outstanding balances have surpassed £71.5 billion in 2024. Borrowing costs remain steep, with the average interest rate exceeding 35.95%, up more than 5% from the start of 2023.
As inflation continues to stretch household budgets, many people are turning to credit cards to cover everyday essentials. However, as interest charges grow, even small balances can quickly spiral out of control, leading to financial stress.
How Incredible Can Help You Take Control of Your Debt
With rising debt a shared challenge in both the US and UK, managing credit strategically is more important than ever. That’s where Incredible comes in. Our app is designed to simplify and optimise your credit card repayments, helping you save money and improve your financial wellbeing.
Here’s how Incredible works:
- Consolidate Multiple Payments into One
No more keeping track of multiple due dates. Incredible combines all your credit card payments into a single monthly payment, making it easier to stay on top of your finances. - Reduce Interest Costs
Our app calculates the most cost-efficient way to pay off your credit cards. If you’re carrying a balance, Incredible ensures your repayments minimise interest charges. - Set Goals and Track Progress
Whether you’re aiming to pay off debt or save for the future, Incredible helps you set goals and stay motivated with tools to monitor your progress.
Why Take Action Now?
The cost of credit card debt is unlikely to decrease significantly in the near future, even if interest rates are reduced. Acting now to manage your debt can save you money and protect your financial health.
With Incredible, you can take control of your credit card debt today. Whether you’re struggling with rising balances or simply want to optimise your repayments, our app is designed to help you make smarter financial decisions.
Incredible makes managing and paying multiple credit cards easier. Incredible is now available on the App Store and Google Play Store - start your journey to better financial health today!
