American Debt Stings Like Never Before in New Era for Households

March 15, 2024

For the first time on record, interest payments on those and other non-mortgage debts are as big a financial burden for US households as mortgage interest payments. As monthly debt payments take up more of workers’ paychecks, those consumers are more exposed to potential economic contractions. After a divorce in 2020, she’s shouldering $4,000 in credit card debt. “We had more money when Trump was president,” she said, noting that three years ago her credit card debt was less than half of what it is now. That’s alongside $6,000 in credit card debt, which she accumulated when she was unemployed for a six-month stretch in 2022.