Rising debt, and rising defaults. A number of factors in play, but it's only a little inflation..... Troubling signs emerge as credit card debt hits record high (yahoo.com)
Mine is $0. My house is paid off, my cars are paid off, when I buy something I pay with cash, if I don't have cash then that means I can't afford it. Anyone can live like this if they want to and it save a heck of a lot of money as you are not paying any interest or fees.
You and I are exceptions to the general rule as portrayed in the OP. My mother raised me that way, never buy anything you can't afford. That's why the CBDC is such a threat to this economy and liberty.
I fell in the hole about 30 years ago, and scrambled for a year and a half to get out. Swore it would never happen again, and it hasn't. I use a credit card, and pay it off every month, I get 'cash back' which I'll use to pay against the bill. The house is paid for, as are my vehicles. It's all a matter of finding the line between need and want. Too many people can't find it.
The 20% interest rates on credit cards is not helping matters. Personally I pay off my card every month and use the accumulated points for travel.
If you are paying 20% interest then your credit rating must really suck. Most credit unions will give you a 13% card as long as your credit is halfway decent. I would still avoid them unless you pay them off each month.
My credit rating excellent, but I noticed that my credit card, which had been 13%, went up to 18.99% a couple of months back. I don't pay much attention, since I don't use it.
Average rate is 21.89%. With prime credit score you can get 17%, but as you know they can adjust the rate and limits as they wish. Credit Unions might get you better rates. I don't worry about it since I do not carry a balance.
The level of credit card debt becomes important whenever the state of the economy results in a reduction of jobs. When that obtains, the level of defaults increases and acts as a further economic depressant. Regards, stay safe 'n well.
Actually, the level of credit card matters when people cannot make their payments. It happens even when the economy is good and people make unwise choices.