Why Credit Card Debt is Still a Big Problem, Even with Steady Inflation

Inflation numbers are looking better, but that doesn't mean credit card debt is any less of a burden. The latest reports show that prices are rising at a slower pace, which is good news for everyone. But for people struggling with credit card debt, the high interest rates are still a major issue. Credit card companies are still charging very high interest rates, often around 22% or more. This means that if you have a big balance, you're paying a lot in interest every year. Even if you're only making minimum payments, the interest adds up quickly. Compare this to the inflation rate of 2. 7%, and it's clear that the interest on credit card debt is growing much faster than the value of money. Economic uncertainty is another reason why credit card debt is risky. Even though overall inflation is steady, there are still concerns about tariffs and rising food prices. These factors can make it harder for people to manage their debt, especially if their financial situation worsens. Carrying high-interest debt also means missing out on other financial opportunities. The money spent on credit card payments could be used for savings, investments, or emergency funds. With inflation under control, now might be a good time to tackle debt aggressively and focus on building financial stability. In summary, steady inflation is good news, but it doesn't make high-interest credit card debt any easier to manage. With economic uncertainties and high interest rates, debt forgiveness remains a practical option for those struggling with significant credit card balances.